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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: Hectorite who wrote (10331)	4/11/1999 3:43:00 PM
From: NateC	Respond to of 14162

Hectorite....you wrote the underlying has dropped well away from the original cc strike and he want to sell. When he does, his call is no longer covered. ....regarding my situation with AOL Actually...I would never ever sell a naked call. I've read this from McMillan, Trester, Roth, and I believe about anyone who's written about options investing.....the risk/reward is too awesome. In fact I don't think any of my 3 brokerages will allow it. They won't let me sell the underlying,without selling the call first. To resolve my situation with AOL...(if I don't want to be exercised)...I FIRST must buy back the call. THEN, I decide which upstrike further out call I want to sell. (if I want to do that). I could even sell the ITM 155 Strike, collect the premie...and plan, or hope, on being exercised. The lower the strike price on my May CC...whether it be 155,160,165,or 170.....the more money (the other dude's money in Herm's verbage, that he gave me) that I have available to buy protective puts.