Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Scott who wrote (8819)	10/13/1998 10:43:00 AM
From: Scott	Read Replies (1) \| Respond to of 14162

Well, I couldn't wait, so here's what I did. I bought 400 FORE at 10 7/16, and bought 8 Nov 7 1/2 puts at 3/8 to protect me through earnings. My current nut is therefore 10 13/16. If it rises towards the upper BB, and the RSI approaches 60, I'll write 4 calls, maybe Nov 10's, which should be pretty high at that point. Then I'll wait until Nov. expiration, and the whole thing disappears, leaving me with the difference between the call price that I wrote, and the 13/16 loss from the nut to the strike when I get called out. Does this sound like a good WINS play?