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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: James F. Hopkins who wrote (12854)	5/29/2000 7:59:00 PM
From: Richard James	Read Replies (1) of 14162

James: Also would use MO div capture in IRAs. My broker will not let me buy puts, which I may wish to use as a hedge. Trying to locate a broker that permits this. If cannot, can buy them in my taxable account, and any loss would be made up by a taxable profit. Anyway, using Herm's WINS What If Calculator, and Jan2002 LEAPS, appears I would earn 17.5% annualized yield if hedged with puts and 20.7% annualized yield if hedged. This would be without any allowance for taxes and allowing for commissions and fees. Actually, these yields would be improved slightly by entering on the last day before going exdividend on the next quarterly payment and closing on the first day of the last ex-dividend date of the last quarterly payment, which would probably be in Dec 2001. Also if I can get a bit stronger premium. Sound right?

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