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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Magnatizer who wrote (7664)	8/13/1998 9:44:00 PM
From: Sal D	Respond to of 29382

David, I am not saying covered writing is a bad thing, as with all option strategies there is always a good and bad time for all of them. I was just bringing up another point of view. There are many types of investors and many types of strategies, individual investors must pick which one fits there personal style. As you said when a trader becomes and investor and uses the covered write as a hedge he has made a decision he feels comfortable with and if all works out he has done well for himself. I do feel that your strategy is a good one. As with all strategies we are still assuming we know in which direction the price of the stock is going to go. I also use TA quite a bit and agree it is helpful but when one is in trouble it is possible that TA got him there in the first place. Don't get me wrong David I believe TA is a excellent investment tool I just do not have the time to be a trader and is probably why our strategies differ. I am more of a long term holder (but trade a little when I have the time) I have been buying deep in the money calls with expiration dates 120 to 180 days away and have done pretty good, the action is slower but that's how I like it. I have explored the uses of covered writing but have not used them as of yet, as with all investors I to have losers, I think maybe I'll try the old covered write on one of them when I think I see the bounce coming and see how it works. I appreciate your thoughts. Joe