Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Mark Z who wrote (10280)	4/9/1999 7:11:00 PM
From: NateC	Read Replies (1) \| Respond to of 14162

Indeed, in only 4 of the past 12 months did you make more $$ CC'ing CMGI. That is, just holding the stock uncovered was the better investment. But who knew when the stock was at 40 in December that it would jump 600% by April? A CC is in effect shorting the stock and with fast movers, you can 'lose' or just not gain as much. ALSO, bear in mind that if you only get 1/2 of the monster run-ups, you're probably still getting a pretty good return on your investment and shouldn't feel bad because you didn't get all of it. Its just being more conservative. The only thing I might disagree with a little...(excellent post Mark)...is that if you CC a stock that takes off on you...and you didn't bother to buy the nice protective upstrike call...to protect you from runaway.......if you buy the CC back near expiry....generally you have at least made the time premium....which you also pocket..as soon as you roll up to the next month.....agree??...this of course disregards commissions

To: Mark Z who wrote (10280)	4/9/1999 9:53:00 PM
From: simplygold	Read Replies (2) \| Respond to of 14162

Selling puts on monsters like ATHM, EBAY etc..seems to work well in conjunction with just buying and holding the stocks long. The premiums are nice and if the stock goes down you own a monster at a discount to current prices. So far I have never been put one of the monsters. LL

To: Mark Z who wrote (10280)	4/10/1999 12:41:00 AM
From: Shell R. Poust	Read Replies (1) \| Respond to of 14162

Thanks for all the ideas. After looking at the April and May call options for CMGI ;plus who knows what will happen to the market Monday because of CPQ ; might be the chance to buy back the Aprils 110s at a bargin.If CMGI doesn't go down,will buy back april 110 and sell May 120s (almost the same price).Can make another $1,000 for one month plus have a lot of downside protection(44 pts). 3rd choice let CMGI get called away on 4-16 (return of about 16% for one month)This coming week could be fun;both the downs and up! Comments??