Systematic Covered Writing begins with the establishment of Initial Positions. The covered writer has come to realize that after all of the analysis, after all of the research, when it comes right down to it, nobody knows which stocks are going to be higher a year from now or which are going to be lower. With most investment strategies, there is a need for the market (the holding) to move in a particular direction in order for the 'strategy' to end profitably (i.e. 'to work').
As you contemplate a particular example, continually, please ask yourself "what has to happen in order for the example being presented to work". Does the stock have to increase or decrease or can it just stay where it is? If the latter is the case, then do we really need to know which stock is going to appreciate?
You will be able to select examples by clicking any of the links on the desired row. There are two types of examples. A detailed example contains additional information, where as an email example is simply a copy of a message sent to subscribers on trade execution day. There are also additional examples at the end of the strategy discussion. These tend to be historically older, but they also contain detailed information . . . please consider taking the time to review this material. It is presented for your benefit . . . or at least that is the goal of providing the information.
The Buy Back & Roll Out & Up Strategy