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Strategies & Market Trends : Giant LEAPs...

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To: up3up4 who wrote (3)3/13/1997 4:42:00 PM
From: Mike 2.0   of 315
 
Selling covered LEAPs intrigues me. I think it could be an excellent strategy within an IRA. For example, buy stocks in your brokerage IRA account which you want to hold long term anyway, then turn right around and sell a LEAP well out of the money but with longest period of time until expiration. Then pour the LEAP proceeds into another stock, a high yield bond or a zero coupon, or whatever. I've thought about COMS or heck, even Ma Bell (T) at paltry 11 PE, for such a strategy. Thoughts welcome.
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