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: yaumi who wrote (8899)	10/27/1998 9:53:00 PM
From: Herm	Respond to of 14162

Welcome Yaumi to the forum, Glad you made a nice quick profit. To answer your question. QUESTION If the plan is to find a good stock moving off the lower BB, wait til it increases in price in order to get a good premium on the CCs, why not just sell the stock and take the profit?? What am I missing here? ANSWER It boils down to trading style and the amount of time you wish to invest. Your view is not wrong and it is very profitable! I guess we don't want investors to become accustomed to a "one trick pony." Riding a wild CC workhorse is fun! What you are suggesting I would consider as momentum trading. That is, you are using the technical rebounds as a entry point and riding it up for quick profits. Yes, it does work and you can do it over and over provided you watch the screen closely and often. There is one assumption we are making here! That is, the person knows how to read the charts, look at the fundamentals, and acts on the data. With practice that is done all the time using one segment of W.I.N.S. Now, when you are done with that stock you have to find another one! Yes? Well, if you can ride a stock up and make a profit, and you can ride it down and make a profit even faster with the same stock. Why not milk the stock up, down and sideways? The more you do it, the better you will know that stock and the more profits that you should be able to make with less stress. It becomes work finding new stocks all of the time. Some people would like to do other things with their significant others and kids. W.I.N.S. provide a good returns with a mininum of work. You are more experience Yaumi and you have the choice to pull out the tools from the tool shed. Now, if you don't one and awhile use those tools they will get rusty. So, in short! Different stokes, for different folks. Thanks for your question and we want to hear more from you more! We like to tap everybody's brain for the benefit of the readers and learning. There are so many ways to extract profits from the markets!