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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: Herm who wrote (9560)	2/3/1999 12:25:00 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 14162

Just thought I would drop by. I sold my long position in amkr (I decided not to do covered calls since I used it as a trade.) I did make some nice profit on it as I bought it at 9 11/16 and sold above 11. Wish I would have held one more day and got 12. Also, I bought some cube monday morning for 20.25 and sold yesterday for 21.25. Not much profit there, but I am now bearish again and very much so. In fact, I think we may see a correction of a larger magnitude than the lows of october. Unless you have been in the right sectors, this bull run has been very narrow and the advance decline line supports this. And now some of the leaders are starting to fail. And we all know what that means. I am currently short lcos and had a covered put until yesterday when I bought it back. Another nice move since the stock price has fallen back again and I can now sell another put. I think it will drop lower though. I am still looking at them oil stocks. I want to trade them in my IRA, but am in process of opening my account at my broker and transferring my mutual funds. I did not realize I could do covered calls there until recently. I use regal securities. Now for a few picks. I am still bearish on lhsg (posted a few weeks ago when it was at 57, now 44). I will post tickers for now since I am tired. rmbs, tklc, amzn (risky), lcos, f, anf, aeos, lu, bebe,cdwc, cree, pixr, and some others. One which I may go long is cs. it is beaten down and looks good for the wins program. I am also looking to go long gne, but with options and plan to straddle it. Ivx looks ok. This market is quite brutal. Look at tecd someone posted earlier. ouch. Turned into a value play in a few hours.. The ones in the oil industry which I think will be aquired or do the aquiring are esv, vrc, mrl, glm. These all have low debt and low price to sales ratios and have some cash on the side. At present, some of them are trading below the value of their assets. Much like the semi industry about a year ago. Sorry for the long post. Just adding my 2 cents though. Good luck and look at hedging with some bear traps and /or some covered puts especially if this is a correction.

To: Herm who wrote (9560)	2/3/1999 1:07:00 AM
From: RayV	Respond to of 14162

Herm & jb, yes I have been in and out of TECD several times and have always made money on it. This time my cost basis is the result of a couple of rounds of CCs last fall. Currently I am trying to work with stocks that have less chance of zooming down to zero which is why TECD caught me by surprise today (not that it went that low). I don't think it's going down much further, but you never know. I'm going to watch for a day or two and then probably do some deep calls far out. It works better for me this year to repair for a few months rather than taking the loss and moving on. Thanks for your ideas, guys. Ray

To: Herm who wrote (9560)	2/3/1999 9:48:00 AM
From: jebj	Respond to of 14162

>! The repairs would not work until TECD dust clears. In the meantime, he could cut those paper loss dramatically. - Herm Tks for the reply - my comments were not for TECD in perticular but the repair concept in general. If one - for some reason - wants to keep a stock after it has tanked then I see a place for it. However, it would seem that great weight must be given to where is the best use of available funds in any market play and trying to repair a serious loss would need to be balanced by the possibility that the same money invested in a new stock would increase at a much faster rate. Also, one always then has the tax loss as well! :) jb

To: Herm who wrote (9560)	2/14/1999 4:28:00 PM
From: FruJu	Read Replies (1) \| Respond to of 14162

Tax issues for covered calls?? I think this has been covered before, but since it's rolling around to April 15 again and I can't search more than 120 days back, I thought I'd ask again to see if rules have changed. 1. Are covered calls "substantially identical instruments" for purposes of wash sale rules? For example, I own 1000 IDTI stock. I sell the Aug 7.5 calls at 1 1/8 on July 5. The day before expiry (Aug 19), I decide to roll out another month, so I buy back the calls at 1 3/8 (creating a capital loss), but then immediately sell the Sep 7.5 calls at 1 5/8. The Sep 7.5 calls eventually expire worthless as IDTI closes below 7.5 at expiry. Can I deduct the capital loss of rolling over the Aug 7.5 calls, or is this considered a wash sale? 2. If my stock is assigned at expiry through a covered call I've written, do I report the net proceeds of the sale as the strike price for the stock PLUS the proceeds of the covered call which was assigned all on one line, or do I report them as separate transactions? The reason I ask this is that the 1099-B forms admonish you to make certain the figures you report on Schedule D match what the 1099-B forms say, but if you lump both the stock proceeds and the covered call proceeds together, then the total will obviously be more than what the 1099-B form says. Is this likely to draw a red flag from the IRS? Thanks in advance for advice.