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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (9080)	3/24/1999 9:53:00 PM
From: HairBall	Respond to of 99985

Casaubon: Well, you have a well thought out plan...many have no plan! Good for you. Regards, LG

To: Casaubon who wrote (9080)	3/25/1999 5:22:00 PM
From: Teresa Lo	Read Replies (1) \| Respond to of 99985

Basically I guess you are planning to go long stocks and do covered call writing. Position: Covered stock write. Buy the stock and sell a call. Outlook: Mildly Bullish, lower volatility. Risk: Unlimited. If the stock falls hard, premium taken in will not cover stock loss. Reward: Limited to strike less stock plus options premium. Break-even: Stock less call premium. Time: Works for the position. Volatility: Works against position. Delta: More long than short. Equivalent Strategy: Sell a put. Naked. So perhaps it might be safer to just sell a naked put equivalent to how many shares you were going to buy in the first place and only pay one commission. Put the money up for margin into your account and earn interest for the money that would have gone into stocks in the first place. Just an idea.