Joe Stocks finally talked me into the benefits of call writing a while ago, Lee, and since then I have done very well with it, having some of my best months ever. . .well, maybe not ever, but lately for sure. . .
Anyway, I write the calls between $2-3, then buy them back when/if they fall to half price, then do it again and roll to the next month where appropriate. Only once have I allowed my shares to be called away, and once to avoid losing my shares I bought the call back on ex day, which cost me $5 more than I'd gotten when I sold it, but other than that the strategy has worked very well and I'm having a lot of fun with it. So far still experimenting, so only working with one call and one lot of 100 shares per issue until I have a better grasp of the strategy. I think it works well for me because it gives me a price buffer on an adverse move when I am traveling and cannot watch the screen all day. The downside is that it also puts a limit on one's profits.
Newly
