Herm,
I understand your strategy, but my point/questions were mostly related to difference in stock ownership CCing versus LEAP CCing.
Believe me, I read every post your write, I bookmarked this subject the first day you started it. I just think there are some fundamental differences between stock and LEAP CCing that are potential pitfalls. I follow WINS very closely, I feel it is an accurate system, provided you have picked a good stock. I was just curious because LEAPS add that new dimension of time premium working against you, and not for you as we usually expect in a stock ownership CC situation.
I am looking into this as a possibility, but it seems to add a new element of risk that needs to be accounted for. Long Calls and Puts can eat away at profits, but I assume that the lower cost of LEAPS makes up for this?
HERM WROTE:
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3. I have repeated myself over and over! I like to go with long sideshow calls when a stock occassionally gaps. Recent example. IFMX and ITDS (DOX). I still own them and I continue to milk them up and down even while I wait for the Feb. exp. date and both CCs are in the money right now. You folks worry too much about being called out! I rather do sideshows on a stock I have a better feel than move onto another stock which may be an unknown. Patience and a close eye is the name of the game.
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I'm sorry if you feel you are repeating yourself. Looking at what your wrote above, I'm not sure I quite follow what you did in this case. IFMX recently took off. At what point did you decide to buy long calls? Did you feel it was going to make that quick run up, and decide to buy those calls before any real advancement? It did end up petering out, did you wait for a reverse and sell the call in a decline, or hold it knowing you needed it for protection against a continued runup? All I'm trying to gather is specifics. I'm not sure what you did with IFMX to keep up with it. I'm only referring to LEAP situations here. I can handle straight ownership CCing, because dealing with a stock running up is a good thing compared to other scenarios.
Thanks, and sorry for the inconvenience...
Ryan |
