Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: David Wright who wrote (10659)	5/8/1999 4:25:00 PM
From: tuck	Respond to of 14162

Dave, We're pretty close in our styles. I eventually roll my premie cash into new plays, too, but I am careful not get much more than 30% to 40% margined. I had a couple of bad experiences with that last year. So I do not do that as fast as you do. I've let myself be called out of several plays also. Edify has such good premiums -- even on their in the money calls -- that I expect to play it for at least another month, however. I took some cash generated and bought more Edify because it was still the best thing to do in my mind. So I got a little cash/compounding in this month, myself. So far, so good. You've got McMillan's book, I take it? He describes the ins and outs of rolling up and down better than I do. Some kind of straddle around earnings is probably a good idea. I'm not quite getting those returns, because I don't dare use margin so aggressively, but pretty close. Time to go work out. It would be nice to see the thread collaborate on refining the TA for this sort of an approach. Then we can do a case study of that approach versus Herm's longer term approach with more sideshows. In a few months, we can resolve the "long and deep" versus "short and shallow" approaches once and for all! Well, we'll probably still be debating it, but it should nevertheless be quite instructive. I expect y'all will have made significant progress by the time I get back from climbing this afternoon. Ciao for Now, Tuck