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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 (9818)	3/1/1999 9:49:00 PM
From: Alan L. Fulkerson	Read Replies (1) \| Respond to of 14162

I also own a substantial position in Cisco. However, unlike you, I write CCs against it. I may be naive, but I write above its resistance by 5 to 10 points. Maybe I'm leaving money on the table, but some is still going in my pocket from a stock that pays no dividend and which is one that I don't want to sell

To: Cesare J Marini who wrote (9818)	3/1/1999 9:54:00 PM
From: VincentTH	Respond to of 14162

Joe, Re: 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 Exactly. For trending stocks which constitute my core holdings, I tend to buy and hold, and avoid selling CC. However, that is not to say that I am not finding WINs strategies useful. If I believe the stock may retrace, I buy cheap puts for protection, or even box the long position when puts are expensive. Re: OT: CSCO, I've been kicking myself for missing CSCO in the 40s last Aug. Wondering if the opportunity will present itself again. I am keeping my powder dry just in case: no more margin, and accumulating cash. My 2 cents, //V

To: Cesare J Marini who wrote (9818)	3/1/1999 10:28:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 14162

< I really want to keep the stock, so I don't CC it, because I don't want to risk being called out.> OK, I understand. Actually I also manage my mother's account and do CC's to give her a small extra income, however, like you, she does not want to sell the stock. Has held GE for decades. So what I do for her is go about 2 strikes out and only 1 month out. I want the calls to expire for a little cash for her. If the price gets close to the strike, I roll out a month and up a strike. Once I had to go out 2 months. She doesn't get the income that month, but gets to keep the stock. Not my way to do it, but she's my mother. Tom

To: Cesare J Marini who wrote (9818)	3/5/1999 11:40:00 PM
From: NateC	Respond to of 14162

Cesare..you wrote < 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.> Not knowing your numbers...have you done an analysis of what your capital gains tax would be if you sold it (or got called out on a CC)...and then reinvested it the monthly way with CCing every month. Sure your tax might be a major hit...but now you're locked out of any CC premium. That would hurt me and my current plan.