Comments on: Volatility: Today’s Uninvited Guest http://www.callwriter.com/blog/2007/08/29/volatility-todays-uninvited-guest/ Tue, 06 Jan 2009 08:32:49 +0000 http://wordpress.org/?v=2.1 By: Jeff http://www.callwriter.com/blog/2007/08/29/volatility-todays-uninvited-guest/#comment-109 Jeff Fri, 31 Aug 2007 03:40:28 +0000 http://www.callwriter.com/blog/2007/08/29/volatility-todays-uninvited-guest/#comment-109 John, as usual, your comments are spot on. I especially agree with writing ITM calls in times such as these. For the past couple of months in fact I've been writing either ITM or ATM calls exclusively. I've been writing covered calls for about nine years now, and writing ITM or ATM calls when the market is especially volatile has been a strategy developed over time for me. Callwriter.com's lists and information are organized so well that I can scan the lists very quickly and identify potential candidates. I probably do more research than the average trader, but over the years I've found what works for me, and refined it down to a system. I have a worksheet that I've developed for my own use that makes doing methodical research flow easily. I'm a huge believer in keeping acccurate records of my research and progression of each position. Over time being able to go over such information really helps narrow down the commonalities of great trades. The one area where I differ somewhat from the Callwriter U way of thinking is with regard to earnings reports. In some instances, such as when I'm very bullish on a company, I'll start aquiring a position prior to an earnings announcement. Some times I don't sell calls right away, which is very different from my normal buy/write trade style. In some cases there will be a huge surge in premium immediately prior to the earnings release, or right after. It isn't something I do often, as I am a big believer in buy/writes being the best strategy the majority of the time. It worked very well for me with GRMN though. I also recently did do a buy/write with OVTI, even though they were announcing earnings today. With the announcement and raised guideance, and the aftermarket action, it appears that it will work out well. I also held CROX over the last earnings announcement with a good result. There are still a lot of good covered call possibilities to be found with the help of callwriter.com. In the last two months I've been able to average right at 8% monthly. I'm not dooing any LEAPS right now though, and haven't written anything more than 56 days out for a couple of months. I'm very anxious to see the new lists as it sounds like there will be some additional profit potential to be tapped there. Thanks for the continual improvement, it's greatly appreciated. John, as usual, your comments are spot on.

I especially agree with writing ITM calls in times such as these. For the past couple of months in fact I’ve been writing either ITM or ATM calls exclusively. I’ve been writing covered calls for about nine years now, and writing ITM or ATM calls when the market is especially volatile has been a strategy developed over time for me. Callwriter.com’s lists and information are organized so well that I can scan the lists very quickly and identify potential candidates. I probably do more research than the average trader, but over the years I’ve found what works for me, and refined it down to a system. I have a worksheet that I’ve developed for my own use that makes doing methodical research flow easily. I’m a huge believer in keeping acccurate records of my research and progression of each position. Over time being able to go over such information really helps narrow down the commonalities of great trades.

The one area where I differ somewhat from the Callwriter U way of thinking is with regard to earnings reports. In some instances, such as when I’m very bullish on a company, I’ll start aquiring a position prior to an earnings announcement. Some times I don’t sell calls right away, which is very different from my normal buy/write trade style. In some cases there will be a huge surge in premium immediately prior to the earnings release, or right after. It isn’t something I do often, as I am a big believer in buy/writes being the best strategy the majority of the time. It worked very well for me with GRMN though. I also recently did do a buy/write with OVTI, even though they were announcing earnings today. With the announcement and raised guideance, and the aftermarket action, it appears that it will work out well. I also held CROX over the last earnings announcement with a good result.

There are still a lot of good covered call possibilities to be found with the help of callwriter.com. In the last two months I’ve been able to average right at 8% monthly. I’m not dooing any LEAPS right now though, and haven’t written anything more than 56 days out for a couple of months. I’m very anxious to see the new lists as it sounds like there will be some additional profit potential to be tapped there. Thanks for the continual improvement, it’s greatly appreciated.

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