Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Herm who wrote (7528)	5/28/1998 4:57:00 PM
From: ajs	Read Replies (1) \| Respond to of 14162

Hern & other, great thread! I have been reading for a while and would like your thoughts on the following: I have established two similar positions in GENZL, the first about a year ago at 9.5, i have written several covered calls and have lowered my nut to 7.13, I just opened a similar position at 7.18 and sold the july 7.5's lowing my nut on this to 6.65. The stock price has now dropped and trading in the 6.3-6.5 range, with what looks like a downward trend, negating the gains I have made with my premiums. My questions are ,is this a good stock to write calls on? ( GENZL is a small bio-tech company, no earnings, high burn rate, another offering coming, diluting value, downward trend- However, it is affiliated with GENZ, which lends some stability , it's carticle product seems to be doing well and it has some other promising products in its pipeline. I would not mind holding long term.) Also, i have a June 7.5 call on position and July 7.5 on the other, what would you recommend, writing another 7.5 or 5 and how far out? Can i write option on this if it goes below 5? Thanks!