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: KB who wrote (7690)	6/18/1998 1:46:00 PM
From: VincentTH	of 14162

KB, I don't have an account with ETrade, but I can shed some light into this matter: Selling Call against LEAPS is not CC. It is called a spread. You need to be approved of level 3 in order to do this (CC is level one, buying calls/puts/LEAPS is level 2, Selling naked calls/puts is level 4). 2 things can happen here: 1. You are not yet approved for level 3. 2. ETrade requires an arm and a leg for margin requirement for spread (Fidelity requires 10K for the initial spread). If you cannot resolve it, try Waterhouse. There is only a $250 requirement per credit contract, and you can get approved for level 4 easily (they give you a hint on how to get approved on the application) Good luck with your investments

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