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: Herm who wrote (10818)	5/17/1999 5:10:00 PM
From: pride	Respond to of 14162

to all who responded, thanks from a novice for the great advice. sincerely, pride

To: Herm who wrote (10818)	5/18/1999 7:18:00 PM
From: Sam2482	Read Replies (2) \| Respond to of 14162

Herm, do you ever sell naked puts on stocks you would like to own ? I agree that selling naked calls is very risky ...on the other hand selling the puts on quality stocks that your willing to own makes sense to me. Example: I am looking to add to my holdings in LU. It seems to have strong downside resistance in th 55-56 area. I will sell the JUN 55 PUTS 1.5625 thereby reducing my cost to 53.44 @ share if it is put to me.I will then sell covered calls on the shares put to me. If it doesn't go down to 55 I pocket the premium and look to sell more puts. This strategy seems logical to me. I would be interested to hear from other investors on how they make these plays. Is there a better spread that I am missing?