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Strategies & Market Trends : Covered Calls -- Ignore unavailable to you. Want to Upgrade?

To: tchphysics who wrote (4)	5/3/1998 5:23:00 PM
From: phillip	Read Replies (1) \| Respond to of 86

Jeff, Thanks for starting this thread. I have been "cc ing" for several years mostly in my Keogh account {tax free). I also have used GLM as a vehicle and currently own the stock. I like to write near months e.g. May or June and will divide my strike prices and months e.g. 400 shares May 25's and 400 shares June 27.5's. That way I stay in the game and take advantage of any upside.

To: tchphysics who wrote (4)	5/3/1998 6:00:00 PM
From: Bazmataz	Read Replies (1) \| Respond to of 86

I'm not sure over the next few months the stock will stay below 25. Being that I'm slightly more bullish on the underlying stock, I'd like to write for 27.5s at this point. May is definitely out. Jun 27.5s about 11/16, July 1 1/16 and Oct 2 1/2. Hard to know which to take. By Oct, stock may be above 27.5, but perhaps not after dropping a bit. May be a chance to buy to close before then. In at 22, so that would yield 8 points on 22 or over 30%, minus commissions. I tend not to annualize my yield, only because I think it falsely inflates what I've actually done. After all, anyone could make 1% in a day of trading, but annualizing that to 365% in a year clouds what you've really done. I don't think I'd sell in the money calls at this point, unless they were pretty near term. While 1 1/2 looks good for Jun 25s, I wouldn't want to get called there. That would yield 26 1/2, whereas I could be at 30 by Oct. Is the four months worth the 3 1/2 points from 26 1/2 to 30? Maybe not. What do you think?

To: tchphysics who wrote (4)	5/3/1998 6:01:00 PM
From: VincentTH	Read Replies (2) \| Respond to of 86

Jeff, I own GLM too, but I am currently puzzled with the low time value for GLM. The Jul 27.5 seems to have very little juice in it, despite the volume on Friday. In other stocks, a prospective acquisition news would have increased the call value tremendously. I am still holding on to GLM, waiting to write the Jul 27.5 call or the Oct 30 call. I could be wrong, but the current premium is ridiculously low.

To: tchphysics who wrote (4)	5/3/1998 7:20:00 PM
From: Brad Griffin	Respond to of 86

Thanks for starting this subject. After reading Wade Cooks books I wanted to sell call options and was lucky to find Herman Matos's Covered Call thread on SI. I read the first 1500 messages then I picked SMTG from the Coveredcalls.com site in February, sold my first covered call and made big return when I was called out. SMTG was part of a buyout deal that was announced after I sold my call. The stock price increased 20% on the news. Then I brought MCRE in March and have sold April calls and last week May calls. Now this stock has moved way above my May strike price on a buyout rumor. I'll be called out this month. Looking at the gold stock you highlighted. Covered Calls.com is my only source for CC stocks. It's so easy to make money with this strategy. So far I have never had to use any repair strategies for a stock tanking on me. That's my only risk. I don't care if my stock increases 20% or 50% after I sell the call. I want current income every 30 days so being called out is part of my plan. When the stock moves sideways I just keep selling calls and making income each month. I also use Quattro Pro for my spreadsheets. Please send me the formulas at umpalumpas@email.msn.com.