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: Herm who wrote (9305)	12/28/1998 2:11:00 PM
From: Johndee	Respond to of 14162

Well Herm, The internet stocks sure aren't dropping today. In fact the Xmas figures are pushing them ridiculously high again. I bought some ANIK this morning, and of course it went dead shortly afterward. Back to being patient I guess. Johndee

To: Herm who wrote (9305)	12/28/1998 6:39:00 PM
From: FR1	Respond to of 14162

Jeeez - another barn burner of a day. It's days like today that keep me from selling CCs. I'm afraid that I'd get called out and not be able to get back in with any muscle. Basically, my plan right now is to buy puts that are about 3 strike points out of the money. If the stock goes up a bunch (like 50 points or so), I'll buy new puts that are also 3 strike points out of the money. The puts are cheap compared to the gain the stock is making. If the stock keeps going up, I keep making money. If it ever turns south I will have a bunch of puts waiting on the downside to greet the falling stock. This allows me to keep the stock, and protect whatever gains I have made. I get burned some on the puts but make way more on the stock gain. I guess the only way I can get hurt is if the stock goes nowhere. I hope I am not missing anything in my plans. I agree with you that taking money off the table. Only problem is getting back in.