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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: David Wright who wrote (10744)5/11/1999 9:19:00 PM
From: Herm  Respond to of 14162
 
Some very wise spoken words David! You have a strong grasp of the CCing potential for more than just collecting premies as income. It is dangerous not to use and apply the right option tool(s) to reduce risk and enhance the leverage when it is an easy profit kill. Of course, one does have to invest some time to study and learn the dynamics of options. Otherwise, stick to mutual funds.



To: David Wright who wrote (10744)5/11/1999 9:51:00 PM
From: Teresa Lo  Read Replies (1) | Respond to of 14162
 
And to enhance your "take" you will have to do a little volatility research, but not much, and try to sell them at a time when volatility is highest, but having only dealt with puts, I would defer to someone else, because I don't know how much premiums expand during climactic times on the upside with calls.

The old adage is to sell options in high volatility periods so that the premiums are fat and juicy, so that the purchasers lose no matter what, even if they are right in terms of direction but not right enough to exercise if volatility dies downs prior to expiration.