From: Tom Clark <tec@thomark.
To: ConservativeOptionS
Sent: Tue, May 18, 2010 10:20:47 AM
Subject: Re: [ConservativeOption
IMO 5% give or take a bit.
I don't like keeping a lot of cash just sitting around. If after
several months of rolling up you find yourself short on cash at next
expiration just reduce the size of the CC a little. Instead of
rolling up 5 contracts, just roll up 4 contracts and sell the extra
100 shares to raise needed cash. Nothing wrong with being forced to
take some profits!
Of course if you're only doing 100 or 200 shares at a time your
options are more limited.
Tom C.
At 08:35 AM 5/18/2010, you wrote:
>Greetings,
>
>I wrote this question on a just covered call board, but got no
>response, maybe it is too personal of a question, but thought I
>would try here anyway.
>
>I'm wondering how much one should keep in reserve when writing
>covered calls, in order to make adjustments. Does anyone have a
>percentage figure that works for them when needing to adjust?
>
>Thank you.
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