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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: Dr. No who wrote (8972)	11/9/1998 8:29:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

You expressed it perfectly and you have a clear understanding of the W.I.N.S. defensive approach. The choice between 1 & 2 ultimately depends on your investment style and comfort level. Risk vs. reward! The more money you have in your pocket the more responsive you can be to the upside with sideshow calls if the stock gaps! You still make a profit. Also, the more the stock drops the more you will make since the intrinsic value of the CCs will decay rapidly and you are protected a great deal. Ask yourself this, is there more upside than downside price potential. Note, I have been watching the CBOE VIX which is the volatility index. It has been dropping a great deal meaning that we should be experiencing some rough overall market profit taking. It just reached 25 and the last rock n roll downturn came in around 18 in July. When the waters are calm a storm comes along. From the mid July 18 it shot up to a all time high of 48 in October and you know what a slam dunk that created in just about all stocks.