How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Herm who wrote (12265)	1/26/2000 8:37:00 PM
From: PeterCS	Read Replies (1) of 14162

Herm Is there a free site to get Delta values? I have not been able to find one. Also, I am not totally following you. I think you are explaining using a Leap in place of stock and then using an option at about 3 month duration to write the covered call.I can see this. What I am talking about is holding the stock and using a Leap to write the covered call. I think one would need to hold this position for about a year instead of buying back every few months. Now as Dan replied this may not be a bad idea. 1. because the premium is larger, one has a larger downside protection. 2.If one sells (write) a OTM Leap, one could make the difference between the stock price and the strike price plus the premium. 3.not going in and out and paying commissions on round trips. But one of the concerns would be if the stock price dropped very close to setting up the position would the Leap price fall enough to keep up with the fall in the stock? If the stock took off, one would have to not take advantage of this price increase above the strike price. I think I may have answered some of my own questions, but would appreciate any comments.

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