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To: Joseph G. who wrote (14548)9/3/1998 10:14:00 PM
From: marginmike  Read Replies (2) | Respond to of 152472
 
Hey Jon and Joseph all we want to know is does the stock go up or down. You are filling are little brains with way to much "Theory". My definition of theory is man's generalizations of events they cant controll. Its all worthless. I went to a b grade liberal arts college and slept through economics and business class's. I remember somthing about Supply and demand, and maybee alittle marketing thats it. We live in the real world, in which there is no way with certanty to a) pick when to use covered calls, and 2)jam into generalization and theories the events that are transpiring around you.



To: Joseph G. who wrote (14548)9/3/1998 11:20:00 PM
From: JGoren  Read Replies (1) | Respond to of 152472
 
<<In the seventies and early eighties, covered call writing became popular precisely because those doing it achieved better returns. So, the task is to identify the proper conditions for each and every technique.>>>

I was going to say something like this. Writing covered calls has traditionally been used with a stock that moves little or is in a trading range. In that past time frame, one would usually use it with blue chips that had a relatively stable trading range and dividends to increase the yield on the stock. If your stock got bought, you did not lose much because the stock was unlikely to move much above the call price.