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Author: rlstern Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: foolish four covered call write Date: 1/3/2000 3:10 PM
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I am a recently retired Prof. with a self managed 403B that was worth 1.5 M when I started nine months ago. The major tactic has been to write covered call option contratcts on the stocks at strike prices at least 10 % over the purchase price of the stocks. I have made about 20 % on the portfolio doing this, with two results. First, my stike prices for most of my stocks are mostly 15 % or higher above purchase, becuase I have been able to buy back calls and sell new ones at a higher strike price (e.g. buy XYZ at 100 and sell 110. Stock goes to 112 at expiriation. Buy back the 110 and sell a 115 or 120 and take more new $ in). Second, on occasion I have had to sell the stock at the strike price, in which case I have a short term gain, and more $ to buy a replacement FF stock. Anyone else doing this,and if so what advise to you have for me.
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