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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: Tom K. who wrote (9811)	3/1/1999 8:39:00 PM
From: NateC	Read Replies (1) \| Respond to of 14162

Tom.....good strategy....I like the solid growth, yet conservative aspect of this. what do you do...when a stock tanks in one day....and appears to be headed lower......do you do the McMillan thing...buying back the CC cheap, and selling a lower priced one??...or sell the underlying

To: Tom K. who wrote (9811)	3/1/1999 9:29:00 PM
From: Cesare J Marini	Read Replies (4) \| Respond to of 14162

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 probably should have been more clear about why I don't CC trending issues. For example, I own a substantial stake in CSCO (a core holding of mine) and am sitting on a large capital gain. I really want to keep the stock, so I don't CC it, because I don't want to risk being called out. In my experience, it's been difficult to know when to CC a stock like CSCO, because they ride the upper BB with a high RSI for quite some time without providing an opportunity to write a CC. In your approach, you don't care about being called out. Indeed, you want to be called out. 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. You make a good point, and I may start buying trading positions in some of the trenders to do just that.