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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: Dan Duchardt who wrote (10705)	5/11/1999 1:38:00 AM
From: tuck	Respond to of 14162

Dan, Yeah, I was pretty good at paper trading, too. Only recently have I gotten half decent at the real thing. I suspect we can throw TA out the window on Edify for a while. Crowd psychology is the game now. Rumors are thick that it's going to be bought, with an announcement in a day or two, though I haven't heard of any suitors named here on SI. If I had the time to wade through all the trash that must be on the Yahoo! thread now I could probably get an inkling, but who cares? I appreciate your encouragement on my performance today. When the stock is moving this fast, it is hard to do a roll. You have to wait for confirmation of your fill on the buy back before you can sell again, and on a tiger like Edify, a lot will happen in this time. So I'm trying to calm down and not be hard on myself. I am thinking that in the long run, two quickly executed market orders might be safer and more profitable than trying to shave 1/8s with limit orders in such a situation. Did you ever do that? Another poster (Nate C.?) mentioned having a similar experience with Schwab, noting that he couldn't roll down fast enough to repair when it went south. That's why I try to pick stocks in this price range that don't have so much potential downside, folks. The only loss I've had this year was on a stock for which I paid more than twenty bucks. Thinking surely 21 was near the bottom for a tech stock projected to make a buck and half per share, I caught the falling Computer Horizons knife ten points too early. Fortunately it was a small position. Now I've turned it out to the long term capital gains pasture, of course ;~} I try to find stocks that have been fundamentally overlooked or unfairly clobbered (though perhaps not value stocks in the strictest sense, because some, such as Edify and ImClone Systems, are not yet making money). Unless I fall asleep (hah!!), I should make money on Edify because it's premiums are so high, and the stock price is so cheap, in the absolute sense. My results with this strategy have been excellent so far. Do other threadsters specify a spread on a roll? It seems like the safest way of dealing with this type of situation. The problem is getting through to the broker on the phone. Waiting twenty minutes seemed psychologically tougher than legging into it online, but after sweating out today's action, I am ready for it. Anyhow, if Edify does get taken out, I need to be ready with my next candidate. Time for some nice, relaxing due diligence! Catch Y'all Later, Tuck