TB; RE:" Thingy Covers "
Thanks for the site reference, Berney; got it bookmarked now. Yeah - I've always wanted to try to exit a "trading" position by writing covered CALLs, so we'll learn what that's like. (^_^)
I've written naked PUTs before, but never been put-to; I thought about writing a 55 strike PUT for MTC - Monsanto -- but I honestly thought it would bounce more than it did -- so I bought 91s @ 48 (to go with the 9 in the kitty, profit left-over from some previous long-scalp) with the intention of writing a 55 strike CC to exit - never happened.
It is my understanding that one can write CC's against LEAPs, though I have never done so. This would reduce the kapital requirements a lot, (but you don't get any dividends, of course).
Yeah man - it is a fascinating area for us to explore. I'd like to try taking a long equity position in a high-yield underlying and writing CC's against that. Utility turtles or, even better - ADR's like BST BAB KLM etc.
Is it possible to write CC's in a tax-free IRA ?
My understanding is that options require margin accounts and that IRA's are not supposed to be margin-able; but I don't know, and am not set up that way in my Discover/Lombard IRA account.
These bear market rallies are always suspect; even DELL - you could interpret today's bounce as a retracement up to the old UpTrend Line it just plunged through - which means 55~60 is target extent.
Send me a PM or E*MAIL at your leisure and let's talk about intra-day stochs, TB.
-Steve |
