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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: Caroline who wrote (8374)	8/26/1998 9:52:00 PM
From: Petrus	Read Replies (1) \| Respond to of 14162

Dear Caroline, Many thanks per your kind reply. Neither do I want the shares of my best stock (DELL) getting called away from me. The Strike price (risk) vs Premium (profit) ratio is related to your future expectations of this stock, since it does not depend on market conditions whatsoever. With Dell's behaviour, any strike price seems hours away. My main concern is how to obtain an additional income (writing covered calls), while not limiting my upside potential. Should I just buy back the call, when the stock reaches its strike price (hopefully with the least time value possible) ? *Probably the best (if one can afford) would be to buy another set of shares,, better yet sell everything & just buy Dell (only keep some Cisco)?, but then the same dilemma would persist, for what Iam trying to do is get an additional income (26% / year range), writing calls 8-10% out of the money every month. While still keeping my favourite shares for ever. Do you, or any other fellow investor have any thoughts?? Your comments will be much obliged, Petrus