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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: NateC who wrote (12251)1/25/2000 11:00:00 AM
From: jebj  Read Replies (1) of 14162
 
>It's basically a diagonal calendar spread......now I buying the Jan 2002 calls long...and CCing into February and March...Herm likes to go out longer on the CC's,as you know

Understand that Nate, my question comes from reading Roth's book as to why one would want to CC the SHORT term option rather than CCing with more LEAPS?

Roth sure makes a good case for the latter - longer time means less risk and he shows with his numbers higher ROI as well - - a win/win it seems.

Am Not saying to hold until they expire - roll them shortterm just as one would do the short term option.

One would need a stock that moves AND be able to watch it to time the ins and outs to use this play it seem, however.

jb
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