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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: stockycd who wrote (10780)	5/13/1999 10:02:00 PM
From: David Wright	Read Replies (1) \| Respond to of 14162

Chris, Before you venture into Covered calls, you should read Lawrence McMillan's "Options as a Strategic Investment". I noted in your profile that you are a trader. On this thread we have people with a range of strategies from "long and deep"..Herm, our resident guru/master...to option daytraders, who virtually scalp Covered Calls (mostly because I suspect they are using IRAs, and can't do options any other way). If you start with McMillan, and read the last 300 posts on this thread you will get a pretty good sampling of ideas on which to base your own strategy. I lean more toward the day trader mentality, as you will see from my more recent posts. All the strategies you will see here are good ones, that each person has developed to suit their own style and situation. That said, the odds are very very low that you will be assigned all the way up to expiration date. Dave

To: stockycd who wrote (10780)	5/13/1999 11:22:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 14162

The odds of you being assigned obviously increase when you write calls that are further out. But I don't think you want to do that, anyway. Look at the decay curves. Or just look at prices. Look at the prices of options 1, 2, and 3 months out. What do you see? You rake in much more premium writing 3 successive 1-month calls than writing one 3-month call. Herm, am I wrong, or do I recall reading that you favor writing calls 2-3 months out? Reason? Anyway, I certainly wouldn't go out FURTHER than 3 months.