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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: Greg Higgins who wrote (10404)	4/16/1999 12:40:00 PM
From: FruJu	Read Replies (1) \| Respond to of 14162

If CPQ spikes back up though, is the best thing to do just to keep buying back the calls, and selling the $1/month time premium?

To: Greg Higgins who wrote (10404)	4/16/1999 4:15:00 PM
From: Herm	Respond to of 14162

Your suggestion is good Greg! Yeahhhhh, I must be getting real conservative at 47. Although, I try to consider the young lurker out there that is chopping at the bit to make a profit. My follow-up backup in the event of a CPQ gap up or down is to apply the sideshow cheap PUTs or long CALLs. Otherwise, one CCing one month out (like you suggested) would take a tad more risk. CPQ is still going to be dead for weeks to come. CCing the LEAPs and not holding the stock itself is easy money. LEAPs are real neat for investing in the big expensive stocks including the DOW-30. You get a big $$ bang for the buck. To find the stocks it does require a good working knowledge of chart reading, CCing concepts like our WINs, and option pricing before you can move in and out without losing sleep. Otherwise, it is as close to a no brainer for a savvy retired investor. Just sit back with a super low net cost basis and crank out those CC spreads over and over.