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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: SeaViewer who wrote (7357)	4/24/1998 10:20:00 PM
From: Herm	Respond to of 14162

Hi Jeff, I guess personal trading style. I compound my gains over and over. At times I don't have enough cash on hand when the opportunity present itself. Moreover, I tend to stay within a certain margin cushion. I tend to first buy the calls, wait for the value of the overall portfolio to $ raise, I then exercise the calls with the newly created cash/margin. It's all in my head! But, I feel better having the calls on the line upon entry rather than the actual stock and a negative net cost basis. Once I exercise, I'm ready for CCing or whatever in a profitable mode! In short, I want to make sure when I take on new debt I'm still in a profitable posture.