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Strategies & Market Trends : Covered Calls -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (85)	4/20/1999 1:51:00 AM
From: David Wright	Respond to of 86

Alan, I assume that you are referring to poweropt.com. I use the site to derive a list of stocks and options that meet the preliminary screening criteria that I like to use. The nice thing about the site is that you can quickly get to a list of solid stocks, in the price range you want, that have good option prices at that very moment. From that point, I go to IQC.com, and screen for TA. Is the stock where I want it to be in the trading range, with the right Bollinger band, MACD and Stochastics indicators. I often don't find any that I like, so I don't enter a position from the Poweropt list. If I qualify one from its TA, then I go to the Motely Fool site, and pull up all of the fundamentals to really decide if I want to own the stock long term. If I decide I do, then I go to Stocksmartpro.com, and look at the earnings report schedule; how it is doing in its industry, and I get its volatilty. If I still like it, I pull up the full option chain to see if I can position a covered call to expire just before the next earnings report time. I like to sell calls during the runup before earnings reports, to get maximum premiums. I buy the stock using daytrading principals and practices, to get best price. I usually wait a while to let the stock do the runup I predicted from the TA, and then I write the call, and I buy an insurance put a strike price down at the same time I sell the call. If I can, I will also leg into a call if the stock price goes down before expiration, and I like the TA for an upswing. Using margin, at this moment, my average ROI is currently 54% on my positions. Most of them expire in June. That can change some with stock price changes between now and expiration time, of course, but given that I have insurance puts in place, and solid stocks under cover, I expect it to stay close. My stocks actually went up over the past few days, so I feel pretty secure. The reason you see not assigned to be greater than assigned is because the stock price is higher than the option strike. I just ignore it when it is like that. The lowest one governs my decision.