Comment answer

Jennifer asked a question on getting started trading covered calls. Thought I would post my answer again:

Jennifer,
I hope reading through this blog helps you get some understanding about covered calls. I have been reading about option trading for years, and finally wanted to give it a try so I opened an account using the funds from a small IRA I had in a mutual fund. I started with about $4000.

I think the best way to learn is to just open an account and make some trades. Once you have an account (I use Trade King) you will find trade screens set up for the different option strategies. There will also be research tools to help you find trades. I use an option screener to find stock in the volatility and price ranges I am interested in.

I have found that I am developing a strategy that works for me and my temperament. Everyone that trades has their own style. Read the blogs in my blog roll and read others that you find interesting.

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3 Responses to “Comment answer”

  1. Jennifer Says:

    Tim,
    Thank you so much for your quick reply. What I’m most concerned about is not knowing what to do if the stock price goes down. When you say you would buy the call back does this mean you would hold on to the stocks and keep selling the calls until the price of the stock reaches the original strike price? Secondly, if I open an account with Trade King and if I don’t know how to place an order is there a live person I can call to help me? (please don’t laugh… I know I’m a real beginner:))

    Thanks again!
    Jennifer

  2. Learning Covered Calls Good questions, Jennifer « Says:

    […] Good questions, Jennifer March 29th, 2007 — Tim Jennifer question from my previous post: link […]

  3. Miss39 Says:

    Is it an open source project or not? ,


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