V,
Which method are you talking about?
Sounds to me that you would use the covered calls as a hedge strategy?
If you research a stock and buy when you think it will go up, then why would you sell a call at the same time?
No way would you make 35% doing that.
Ive been selling calls on just a couple of stocks I had, and I sell the calls as a hedge when I think they are more likely to stay same or go down.
No way did I make 35% on them in 6 months, and I usually did not have the short calls during up moves, except once, then I had to roll them up and eventually they came down and expired worthless.
There is also a big discrepancy in the CC group in the way they calculate the percent return. Maybe thats it?
Ross
>
> Ross,
>
> There is some truth to what you say. You have to e able to pick more successful trades than loosing. For that, you need to pick a stock based on fundamentals, technicals and mkt momentum.
>
> Once you know how to do that, you can employ correct strategies in a given market. For example from Oct to July, it had been easy to get 35% return just doing CC.
>
> Take care, learn and invest. Put some cash in multi-family real estate wnd get 13.5% return.
>
> Take care, v
> -----Original Message-----
> From: rvd <rvdidit@...
>
> Date: Sat, 22 Aug 2009 10:01:34
> To: <OptionClub@yahoogro
> Subject: Re: [TheOptionClub.
>
>
> Don,
>
> This group would be a bonanza for you;
>
> http://finance.
>
> They are a very active group about CC. You could spend hours reading the archives full of good information.
>
> I just want to say I dont prefer the method Chris described to you. If you want and expect an up market then selling calls will work against you. If I trade CC, I would have no CC un an up trend and sell 2 or 3 calls per 100 shares of stock during downtrends. Or I would always be short calls and roll them up and down to keep the strike price close to market. But this would only work with front month calls and may only yield 1%/ month.
> You must also have an underlying that wont ever go away, and I dont know of anything 100% guarenteed. Gold and the SPY are you best bets tho. Gold will always have value as long as people are living on earth, I think...
>
> Ross
>
> But thats just me and the yahoo group I posted does not agree with me.
>
> -------Original Message-----
>
>
> From: clslaw
> Date: 08/21/09 09:55:33
> To: OptionClub@yahoogro
> Subject: [TheOptionClub.
>
>
> Selling in-the-money calls on the SPY should be working rather well right now, and will continue to work as long as the market stays in this upward trend. The reason it is working is because the covered call is a bullish strategy that does not require much directional cooperation from the underlying security. So long as you do not see a significant sell-off your positions will be profitable.
>
> Markets change, though. This rally will one day fade. When? No one can say. It will change, though. Your challenge is to educate yourself between now and then, so that you have a plan in place. If you can provide us with some background on your trading and where you want to take it, we will have a much better opportunity to help you choose a reasoned path for your studies.
>
> Christopher Smith
> TheOptionClub. com
>
>
> --- In OptionClub@yahoogro ups.com, "carolinaspring66" <spring@> wrote:
> >
> > I have been doing covered calls on SPY,SELLING IN- MONEY CALLS ONE MONTH OUT.I know I have alot to learn.Could someone give me some advice?
> >
> > THANKS
> >
>
>
>
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