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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: Slava Chechik who wrote (7955)	7/26/1998 3:32:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Slava, It depends on your stomach and your tenacity. It is possible to write CCs deep in the money (rolling downward) and out three months and stay even with the price drops. At the same time, by taking the CC premies $$$ and buying protective PUTs you actually can make money on the drops. The most important aspect of the experience is that you will build up a tool shed of skills and learn to exploit any stock movement once you actually go through one of these defensive events. That is priceless in today's market. The MMs are out there ready to throw a monkey wrench when ever possible. It sure has made me more confident in investing my money. I can sleep at night now and not worry about every price move. I basically know my entry and exit points ahead of time.