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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: Bob Smith who wrote (9121)	11/21/1998 10:01:00 PM
From: k.ramesh	Read Replies (1) \| Respond to of 14162

Both approaches would work, The approach of buying at the Upper BB would be more aggressive as the game plan assumes you can first write a call about 3 months out, then buy back the call within the 3 months, preparing for round 2. Here I have not seen much discussion on the fact that one may have to wait a while to write again, ie expiry does not always happen at the right price of your stock. Whereas your plan B is a more conservative play, Just take the CC premiums and allow the stock to get called away, which it has a greater probability, if it is at the lower BB. having watched the OSX stocks for a while, why would you want to sell cc's on GLM when just holding it at around 10 is likely to be 'better' return wise. You would not have any problems selling the call, as I am almost tempted to buy 'em. ramesh

To: Bob Smith who wrote (9121)	11/21/1998 10:14:00 PM
From: Paul Heye Jr.	Respond to of 14162

It looks like GLM has bottomed and is coming up. It finally moved up off the 10. What does anyone else think. If it follows past movement it should move up to the $13 range. Paul

To: Bob Smith who wrote (9121)	11/21/1998 10:17:00 PM
From: Herm	Respond to of 14162

Well Bob, I guess I'm real protective of the downside in stock ownership. Taking the large CC premies and buying cheap PUTs allows you to use the CCers money to hedge and actually make a profit while the stock cycles downward. And, not every brokerage will allow naked PUTs. But, you can do it like you indicated and it does work.

To: Bob Smith who wrote (9121)	11/21/1998 10:31:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hello Bob, Doug, and others! BTGC - Looks Like A Lower BB Bounce This Next Week! BTGC is finally reaching the lower BB at around $6,.50 The RSI is just about ready to move below 50. Tnis week should be a turnaround! So, I will look to cover my 7 JAN 7 1/2s CCs. askresearch.com