it all depends on your strategy....where do you feel a certain stock price will be at acertain point in time....personally, I think selling the leaps on sunw is the wrong thing to do....well, in my case, I am not willing to take a paltry $6 and then agree to sell my sunw for $35 in two years....again, the premiums are very low....I think over two years sunw goes higher...so why take $6 and agree to sell in two years for only $10 more then current price?,,,,,,Now, some others with rich premiums....maybe.....I was gonna take $10 and write the 03 180 leaps on jdsu, but didnt pull the trigger and now wish I had......$10 upfront, and I agree to sell for $180 in 2 years...not too bad, plus I could have bought those calls back for cheap right now, and then re-write on next pop....all depends on your strategy.....
Good luck |
