Comments for Learning Covered Calls http://coveredcall.wordpress.com An evolving strategy to increase my wealth Wed, 09 Jul 2008 14:44:18 +0000 http://wordpress.org/?v=MU Comment on Picking stock for Covered Calls by Robert http://coveredcall.wordpress.com/2007/05/16/picking-stock-for-covered-calls/#comment-1558 Robert Mon, 30 Jun 2008 17:34:45 +0000 http://coveredcall.wordpress.com/2007/05/16/picking-stock-for-covered-calls/#comment-1558 How does one adjust a straddle/strangle when it has gone bad. Do you put stops on so that when it hits these stops you obviously get out and write another one at a more favourable price? How does one adjust a straddle/strangle when it has gone bad.
Do you put stops on so that when it hits these stops you obviously get out and write another one at a more favourable price?

]]> Comment on Good questions, Jennifer by Options Strategery http://coveredcall.wordpress.com/2007/03/29/good-questions-jennifer/#comment-1545 Options Strategery Sat, 16 Feb 2008 20:07:49 +0000 http://coveredcall.wordpress.com/2007/03/29/good-questions-jennifer/#comment-1545 I usually sell naked puts and have been looking for other people's opinion on covered calls. This is great. I have the almost exact same problem of holding losers too long and selling winners early. It's a shame that you don't post any more. I usually sell naked puts and have been looking for other people’s opinion on covered calls. This is great. I have the almost exact same problem of holding losers too long and selling winners early.

It’s a shame that you don’t post any more.

]]> Comment on Cost Review-Trade King does well by Mike Flynn http://coveredcall.wordpress.com/2007/06/05/value-blog-review-discount-online-option-stock-brokers/#comment-1539 Mike Flynn Mon, 14 Jan 2008 15:48:40 +0000 http://coveredcall.wordpress.com/2007/06/05/value-blog-review-discount-online-option-stock-brokers/#comment-1539 I own 100 shares of TEX and i sold a call the other day and see the premium in my account. I also noticed the broker shows the symbol for the call in my positions with a negative before the number which makes my position balance lower. Kindly explain that thanks I own 100 shares of TEX and i sold a call the other day and see the premium in my account. I also noticed the broker shows the symbol for the call in my positions with a negative before the number which makes my position balance lower.

Kindly explain that

thanks

]]> Comment on SLW: Summary for SILVER WHEATON CORP by Maximus http://coveredcall.wordpress.com/2007/06/01/slw-summary-for-silver-wheaton-corp/#comment-1449 Maximus Thu, 20 Dec 2007 14:47:25 +0000 http://coveredcall.wordpress.com/2007/06/01/slw-summary-for-silver-wheaton-corp/#comment-1449 I would like to see a continuation of the topic I would like to see a continuation of the topic

]]> Comment on Covered Call Adjustment by Minesh "The Monthly Cash Man" Bhindi http://coveredcall.wordpress.com/2007/02/28/covered-call-adjustment/#comment-1366 Minesh "The Monthly Cash Man" Bhindi Sun, 02 Dec 2007 00:12:24 +0000 http://coveredcall.wordpress.com/2007/02/28/covered-call-adjustment/#comment-1366 I know EXACTLY what you're saying about only trading single contracts and having commissions completly EAT up your profits. One strategy I use is to do covered calls where the majority of the cost of the share is paid for up-front. It's easy to do, and it gives you a hell of a lot of downside cover (an added bonus :) ) Check out my website: www.CashForLifeSystem.com Happy Investing, Minesh Bhindi I know EXACTLY what you’re saying about only trading single contracts and having commissions completly EAT up your profits.

One strategy I use is to do covered calls where the majority of the cost of the share is paid for up-front.

It’s easy to do, and it gives you a hell of a lot of downside cover (an added bonus :) )

Check out my website: http://www.CashForLifeSystem.com

Happy Investing,

Minesh Bhindi

]]> Comment on What the heck am I doing? by Charles http://coveredcall.wordpress.com/2007/02/01/what-the-heck-am-i-doing/#comment-886 Charles Mon, 17 Sep 2007 03:35:55 +0000 http://coveredcall.wordpress.com/2007/02/01/what-the-heck-am-i-doing/#comment-886 I ma be wrong, but I think its easier to manage a covered call that's deep in the money when the absolute price of the stocks is a little higher (ie $100 stocks rather than $10 stocks). With a $100 stock, you can be many strike prices in the money before you are 25% in the money -- with a $10 call you're one strike in the money if all they offer is a $2.50 increment. Anyway, staying deep in the money is a good thing to do because you get a good deal of downside protection and can there can still be premium to be had. Also, as you get close to expiration, you can do a diagonal roll up once the underlying's price has moved and you want to stay the same percentage ITM. If you have a net debit of $2 to do the roll, you will get back 5 (150% return) assuming the stock doesn't tank (which is why you want to stay fairly deep ITM so you have time to close out before you get into loss territory). I ma be wrong, but I think its easier to manage a covered call that’s deep in the money when the absolute price of the stocks is a little higher (ie $100 stocks rather than $10 stocks). With a $100 stock, you can be many strike prices in the money before you are 25% in the money — with a $10 call you’re one strike in the money if all they offer is a $2.50 increment.

Anyway, staying deep in the money is a good thing to do because you get a good deal of downside protection and can there can still be premium to be had. Also, as you get close to expiration, you can do a diagonal roll up once the underlying’s price has moved and you want to stay the same percentage ITM. If you have a net debit of $2 to do the roll, you will get back 5 (150% return) assuming the stock doesn’t tank (which is why you want to stay fairly deep ITM so you have time to close out before you get into loss territory).

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