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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: NateC who wrote (10554)	4/27/1999 11:58:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Right on! It is a real bummer when you sit around watching the stock pull back. You basically waste time allowing that dead money in the stock. The long and deep CCs at least give you some working capital for sideshows in the form of either cheap PUTs, more or new stock in your portfolio. In short, you are working your entire stock portfolio while one stock is retreating. Of course, a more aggressive investor could buy the cheap PUTs or short against the box to lock in the capital appreciation. You would be surprise how many people are afraid to short their stock. They just sit there and watch it go down, down, and down before they snap into some action. Usually, they panic and sell at a lost.