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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dr. Id who wrote (1638)	7/26/2001 11:03:03 PM
From: alanrs	of 5205

I'm going to call your complicated example the Excedrine Strategy It's really not that complicated. Find a situation where you can buy a call and sell the next 2 higher strike prices for more than what the first call cost you. This leaves you cash positive with the highest strike hanging out there. I prefer to have it be a covered call, but it could be naked if one were so inclined. Punch the numbers into an option analyzer program and I think you might be startled by what it spits out in the risk/reward world. ARS

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