SI
SI
discoversearch

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: Bud who wrote (9801)3/1/1999 8:42:00 AM
From: Herm  Read Replies (3) | Respond to of 14162
 
Hi Bud,

I going to answer your question. But, I want lurkers to understand WINs before they take this snapshot out of context.

Yes, Bud! The assumption is derived from reading the BB and RSI for that stock and seeing the past history trading pattern. You will recognize these patterns more and more as you see them over and over.
Also, earning release dates and current overall market conditions give you some trends. What I say is "let the trend be your friend."

By covering a used up CC (80%+ of the CC profit has decayed) and looking at another round at a different strike price or length of time out will bring in additional fresh revenue in premies that would protect your downside even further or fuel your long calls/puts sideshows. You will always have some cash coming in or capital appreciation.