SI
SI
discoversearch

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.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: TigerPaw who wrote (113436)3/30/1999 12:32:00 PM
From: Chuzzlewit  Read Replies (3) | Respond to of 176387
 
TigerPaw, the strategy is a mildly bullish one, and works well in choppy markets. It also gives you a small amount of downside protection (the deeper in the money the greater the protection). The trade off is a capped profit which always occurs at the striking price.

I try to write covered calls only when the implied volatility is as high or higher than the historic volatility. You can check these at cboe.com

You need to be patient. This strategy is conservative, and eventually pays off. Did you do the calculation on your position as I suggested in the post? What were the actual numbers?

TTFN,
CTC