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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: NateC who wrote (10086)	3/26/1999 8:40:00 PM
From: RDHickman	Read Replies (1) \| Respond to of 14162

Nate, I've done Buy-Writes through Schwab in the past. It is easy. A quick done-deal. Yes, it effects a trim on the current bid-ask, however, you lose the power of Herm's buy Long position, wait for increase in price of Equity, which equates to an increase in the Premium of the Covered Call. (Depending on outside circumstances and personal viewpoints there can be a number of possible entry points.) You have 2 commissions with a Buy-Write, Purchase commission and Call commission, the same as doing each separately. You can trim an 1/8 or 1/4 or wait for a full point or more. /Dick P.S. I met Wade Cook years ago, doing Real Estate. He baled me out of a possible jam, which I really, really appreciated. However, through my own experience, I have found his Stock Market books (didn't bite on his Seminars)to have ONLY motivational value. ("Wall Street Money Machine" got me excited! - It led me to Herm's Thread.) I have stated this(my own)opinion to you before. I really enjoy Wade, however, If you will take the time to read ALL of the posts on this thread, (I have) I assure you, you will learn more here (thru the exchange of questions and answers, and your struggles to understand what is being said than anything else you could do to learn about Covered Calls. Other resources are beneficial, but the solid, good, practical, real-life stuff is here. It is amazing how many experienced Option Players have joined Herm in responding to our questions. Your most valuable asset is time. You would not waste it, reading this Thread. I've adopted a statement Wade makes on his tapes (Yes, I bought the Tapes) "It all comes together. It all comes together, -" which I think he uses as a signaling device - 1. to his crew to interupt him (with an important (expensive) announcement), or 2. as a signal to change cameras), 3. break the pace, to change-up. I use it or think it frequently to remind me of him (good thoughts) and to remind me to stay on-track, be single-minded in my purpose, and IT will indeed, all come together! Off my soap box - and back to bed /Dick