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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: Shell R. Poust who wrote (8624)	9/19/1998 4:38:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Usually Shell, if time is on your side with CCs then wait until you can cover at a fraction of the original premie so you can lock up 75% or more. So, you collected 1 3/8s from the CC premies 5/16s or better would be the cover price to move on. Reason? If a great deal of time is remaining on the CC then it does not pay to wait around for such a small rate of return. Chances are you would be making more money in sideshows such as PUTs or another round of CCs a few months out! The important part is that you have a tool shed to ALWAYS make money!