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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 (9846)	3/3/1999 12:50:00 AM
From: NateC	Read Replies (2) \| Respond to of 14162

I'm a little unclear as to why some of you thread-lurkers have an aversion to be called out. I write my CC's generally about 10-12% above the underlying's current price. Even if I only pocket 5-6% premie.....if I get called out....that 15% - 18% is a very good month...and I'm ready to go on another stock. Call me out every time......it's a lot better than setting sell stops

To: Cesare J Marini who wrote (9846)	3/3/1999 11:53:00 PM
From: Tom K.	Read Replies (2) \| Respond to of 14162

I'm not sure how you can write those calls month after month and yet never get called. The process is actually quite simple..... when the price reaches your strike, buy back the call (you'll have to pay more then you originally received), then immediately sell a higher strike another month out (may have to go two months) for greater then what you paid in the buy back. This way if you are most interested in keeping the stock, at least you can squeak some cash out of it without losing it. Obviously, this approach is not one that generates a regular income stream (which is my interest). But it makes money and lets you keep the stock which is what you wanted. Now don't tell me you want more then that. Good luck. Tom