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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: Herm who wrote (7673)	6/17/1998 6:01:00 PM
From: Dnorman	Read Replies (1) \| Respond to of 14162

Herm: I have been reading your ROST posts and trying to absorb everything I can before I make the plunge in CC. I have some questions that I am interested in knowing the answers. 1.MM is this an individual or a company? 2.Is their a way to identify who the MM is in the stocks you are buying for CC? 3.Is their a way to find out what other stocks this MM is making a market in? 4.Is the MM the same for the stock as the options? 5.How do you know what stocks have the volatility to make them good CC Candidates? Thanks Dennis

To: Herm who wrote (7673)	6/17/1998 8:26:00 PM
From: Bill/WA	Read Replies (2) \| Respond to of 14162

Herm, Been following your thread for quite awhile. Would you comment on this example? Own 200 shrs BAY bought @ 27.50 on Jan '98 Sell 2 BAY Sept 32.50 CC @ $2 (quote on Jun 16) Pocket $400, disreguarding commissions If stock is called: 32.50 x 200 = 6500 2.00 x 200 = 400 ____ 6900 27.50 x 200= -5500 ____ 1400 return on a 5500 investment (a 25% return in 9 months. Purpose: would be satisfied if called @ 32.50 plus the extra $2/shr. Downside:1.If stock rises above 34.50, I loose out on the resulting appreciation. 2.If stock tanks to low 20's, I have to hold till Sept. expiration to do something. Upside: I'm satisfied with the 25% return in 9 months. Would you be kind enough to comment? Thanks again for sharing, Bill