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: NateC who wrote (9815)	3/1/1999 10:17:00 PM
From: Tom K.	Respond to of 14162

<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> Basically, solid performers don't tank in a day. If the entire market is trending down then it's not the issue that's at fault and I'll just stay with it, let the option expire and do it again the next month on the same issue. At times I'll buy back the call for a quick profit for that month and move to the next month where I can get more time premium. I'm currently holding DELL which did not get called last month because it has been trending down. However I'm expecting a small bounce up tomorrow or the next and then I'll do March Calls. I'll stay with DELL until either I get called out or it stops making such outstanding earnings and then I'll move on to the next solid issue. Tom