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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Hunt who wrote (7302)	4/16/1998 5:51:00 PM
From: Steve Bush	Respond to of 14162

Hunt, that was a great post...very sober advice...thanks. I was personally up 60% over 3 months last year and gave almost all of it back by 1) buying calls on the side, and 2) hanging on with hope instead of having a disciplined sell-stop strategy. Ironically, VVUS was one of my biggest winners. Go figure. The biggest lesson I've learned is that one should paper-trade until he/she is sure they've developed an effective strategy for managing their trades and (more importantly) their emotions. I also think everyone should read "Trading for a Living" by Elder as well. It really gives good insight into how people let their emotions rule their decision-making when it comes to trading.

To: Hunt who wrote (7302)	4/16/1998 8:56:00 PM
From: Braddoe	Respond to of 14162

Hunt, Thanks for the information and advice, lots of good info to be found on these threads. Brad

To: Hunt who wrote (7302)	4/21/1998 5:43:00 PM
From: Craig Monroe	Read Replies (1) \| Respond to of 14162

How do you decide which stocks will pay a high enough premium on calls to make them interesting for a covered call writing approach or are you simply selling calls on stocks you are interested in holding? Thanks. You wrote: Be patient. Wait for the stock to take a dip before buying and then wait, wait and wait some more before writing the call on the up swing. Make sure that the dip is not a collapse of the stock due to some fundamental reason. Remember, that the fundamentals will over whelm TA every time. I have found that buy-writes generally sting me, so I usually CC as a two step approach for a trade.