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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 (12851)5/31/2000 8:52:00 AM
From: Herm  Read Replies (1) of 14162
 
Hi Capt.Jim,

I like your breakdown of doing CCs for short hits and especially doing leap spreads for a combo capital appreciation and damage control. There is a great deal of built in safety with leap spreads a few months out vs. shorter covered calls writes.

Someone would really have to be a terrible investor to get screwed on a bull calendar spread since massive time value of the leap along with the (deep in the money) high delta is on your side. Those out of the money call spreads take for ever to appreciate compared to the leap. The opposite is true as well.

Here is a valuable analysis that Doug put together a few months ago for our subscribers.

leapspreadswins.com
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