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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: James F. Hopkins who wrote (10615)	5/3/1999 1:06:00 AM
From: NateC	Respond to of 14162

You can write CC's on internet stocks as much as you'd like.....but in my experience...over the past 6 months......the premium is never worth the volatility...in other words...they are generally underpriced with respect to their true volatility. (and their historic volatility, altho high, may not reflect their true volatility)....so even if you're CCing at 10% or more/month........these stocks are volatile enough that all of McMillan's repair tricks can't fix your problem....when your favorite underlying tanks 20% in 4 hours...and you can't get through to your broker on the Web, or the phone. (Been there, done that)