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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: phillip who wrote (10848)	5/19/1999 11:38:00 AM
From: cowboyfan	Respond to of 14162

Phillip...I also use Brown and Co. They have the most competitive margin rates and their executons are pretty good to. Plus they have a local office about 10 minutes from my office in downtown Dallas. Given the Fed's new bias, I'm currently evaluating selling calls (uncovered) on some of the financials. I also sell next month out usually 1-2 strikes out and try to get 3/4 minimum. I have a profitable position in CMGI and AOL currently and am pondering selling covered calls....

To: phillip who wrote (10848)	5/19/1999 1:11:00 PM
From: David Wright	Read Replies (2) \| Respond to of 14162

Phillip, With regard to selling naked puts While the margin requirement is less, wouldn't it be prudent to put the 30% difference away somewhere where you can grab it, in case you do get exercised? It seems to me that if you do that, then you are essentially giving up much of the earning power of that 30% of capital anyway, to cover your risk. Also, it seems like I have read that the comparable premiums between a naked put, and a covered call favor the call. Might be wrong on that though? McMillan calls the strategies equivalent, but I question whether the risk/reward profile is the same, especially for those of us who like the near term combinations for income generation and compounding purposes. Dave

To: phillip who wrote (10848)	5/19/1999 7:16:00 PM
From: Sam2482	Read Replies (1) \| Respond to of 14162

Hi Phillip: I use Discover brokerage and also sell ORCL and HD. I have NE and PDS from the oil service sector...but I have been just selling calls on them. The premiums on the techs are much higher. Lately I have been selling on LU. I want to own more at a lower price. But the premiums aren't bad. If you get the stock put to you do you sell covered calls to enhance the return? I go out two strike prices, usually for two months. It looks like DELL got hit pretty good today....I will be doing my homework on it.