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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: Cesare J Marini who wrote (9810)	3/1/1999 6:47:00 PM
From: Tom K.	Read Replies (2) \| Respond to of 14162

I couldn't resist responding as I see the two views to be quite interesting and yet I use a third approach. As Herm points out, he studies the BB's, RSI., volume, etc and generally plays the more volatile issues. You guys point out that you stay away from CCing the trending issues. My approach is to use the trending issues along with Herm's chart views as my validation (not the in-depth analysis however). My focus is on making a good cash return. I don't care about the stock except that it is a solid trending issue (the ones you stay away from). I buy on margin ($80 DELL for $4,000). Then sell at the money calls 30 days out for a 5-10% monthly return. I get called out all the time... and yes I miss "the opportunity". However, My goal is 50% return a year on my base investment and I've been doing it and in some books that's a fair return. I just couldn't resist pointing out that there are as many ways to make money with CCing as there are issues to CC. I think the real key is to lay out a strategy and plan of attack and then stick with it. Mine is simply to make money. Hope that is helpful. Tom