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: tuck who wrote (10352)	4/13/1999 1:41:00 PM
From: tuck	Respond to of 14162

Addendum, I will, however, buy back calls that have gotten in the money as expiration approaches, such that they don't have much time premium left in them. When this happens, I sometimes get to make two profitable CCs in one month with the same money. This has been such a month: bought back IMCL calls, and sold the stock, then bought GCTI stock and sold the calls. I expect to be exercised on the latter, as it's currently 3 points in the money. Expected profit for that chunk of cash: ~25% this month, mostly due to good FA, and (to stay humble) some good fortune. Good Luck to All, Tuck

To: tuck who wrote (10352)	4/13/1999 5:52:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Thanks for filling us in on your experience Tuck. I hate to cover CCs at a loss, so I very rarely do. I much rather have the extra premie dollars at work either on the same stock as sideshows if I'm so sure that stock is running away from me. That usually only happens on surprise news. IFMX and BTGC for example this week. It's no accident by looking at the BB and RSI. I have to chuckle recalling a recent lurker email from a captain in the marines. He indicated how he liked the WINs Approach and was doing very well himself. He indicated a fellow service buddy was being annoyed with Wade Cook's seminars. In other words, paying students were angry because the results were not happening. The captain was turning the other gent on to WINs. Of course, the other fellow was thinking how good could it be for FREE! :-) Well, we all add a little twist to WINs depending on our habits. The point is to get a good foundation and know what to look for to make a profit.

To: tuck who wrote (10352)	4/13/1999 7:13:00 PM
From: NateC	Respond to of 14162

My batting average on rolling up doesn't compare to just letting the stock get exercised. Plus, given how cheap stock commissions are relative to option commissions, letting the stock get exercised looks even better. I usually have a stable of stocks I'm ready to jump to when that happens, and I keep an eye on the one I was called out of should it pull back ( or, more accurately, should it touch a lower BB with RS ~25 ), and look attractive again. I'm in the minority here...but I went back and read McMillan again on Repair....and so I bought back some very expensive calls on Schwab early today...and was rewarding with another 10 points of runup by Schwab. If only the puts weren't so expensive.... But...with a redhot stock like that....you can ride it a ways....and you don't HAVE to buy a put to protect you. You can always put in a stoploss on the stock itself.....although Ameritrade gets all bent out of shape, because they don't seem to have a way to execute the obligatory buyback of the CC, before the sale of the underlying when it hits the stop. (Hopefully we won't have this scenario)...but....it's interesting that Schwab went up so fast this month....there are no OTM calls available for 1999!!