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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: Herm who wrote (10585)	4/30/1999 1:47:00 AM
From: Jon Tara	Read Replies (2) \| Respond to of 14162

BYND - a CC candidate? I've owned BYND since December. It's a wild weasel, and so I would expect the option premiums to be sky-high. Indeed, one of the more annoying posters on the BYND thread on Yahoo is a CC writer. Annoying, because he's making more money than those of us just holding the stock long. :) BYND is about to touch the bottom of the BB envelope. It's also about to cross into over-sold territory on the stochastic. RSI is mid-range, though, and heading down. But it tends not to get into RSI over-sold territory ever, no matter how ugly things get. (What period do you use for RSI, Herm?) I own BYND, but unfortunately, it's in a Datek account, where I can't trade options. I'll probably eventually transfer it. I don't want to just sell and buy in my Preferred account, because I've got 4+ months into this, and it might just be one that I'll let go long-term for capital gains. I'm open to side-bets that would hedge my Datek shares, though. An interesting prospect, to see what I can do about that. Anyway, I want to buy some shares in my Preferred account - probably the same # I've got in the Datek account, and then sell CCs at a higher price. One caveat is that I do think it's possible that these could be called-away at some point. Note the long skinny constricted BBs throughout Feb-Mar. I wouldn't be surprised to see this stock take a rocket ride at some point, but I'm tired enough of waiting that I'd like to start selling premium. I think it makes sense, for me, to hold my Datek shares as-is, while also doing CCs at Preferred. It will be an interesting study to see the relative performance of the two strategies. I will post as I make my moves, and would appreciate any pointers or suggestions along the way. I know this is not a traditional CC candidate. New company, not very stable, earnings - what are they? But it's in the second-tier of Internet companies with some very savvy people backing them. (Paul Allen, for one.) I think it's a good long-term play but with lots of volatility.