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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 (11414)8/24/1999 1:53:00 PM
From: Amit Raj  Read Replies (2) of 14162
 
Herm!
I have a question about the protective put on the CC position on MCOM. I have sold JAN25 calls for 8 1/4 and want to buy puts for down side protection. The puts are very expensive. The cheaper puts I can get are JAN12.5 for $1 1/4 or JAN10 for 3/4 while the stock is about $27. My question to you is how many strikes down should one go for this kind of protection. Suggestions from any one who has this kind of experience are most welcome!
Amit
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