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: Dan Duchardt who wrote (13121)	8/6/2000 3:23:04 PM
From: OX	Read Replies (2) of 14162

hi Dan, Richard, etc. several things I noticed. - Richard, in tune w/ your original question about bid/asks... I was going to mention the exact opposite of 'legging' into the bullish call spread: talk to a live options broker and have them put in a spread order (an atomic order that will only execute if your net debit--in this case--is hit) so you might have a better chance to split the bid and ask on both sides of the spread. afterall, it minimizes the risk involved in implementing your strategy... unless of course you want to leg in and gain an 'extra edge', at added risk. - IMO, it would either be extreme luck or awfully good predicitive skills to leg into the short Mar 50 calls at 15... if you can do it, by all means, more power to you. - Dan, I might be a tad conservative ;-), but I would recommend a bit more margin capactity for naked equity options than 20%. the margin std (for naked equity options) is 20% plus prem. I always build in an extra 'fudge' factor into the maint reqts. never gotten a margin call, but I can only imagine its not pleasant :-) great posts Dan, always enjoy seeing your thorough posts.

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