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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Dan Duchardt who wrote (3389)2/16/2002 4:19:27 PM
From: rydad  Read Replies (2) of 5205
 
"However, I know more now than I knew then, and if I had an account that would permit me to do so, I would instead be buying LEAPS and selling nearer term calls..."

So you are talking about calendar spreads, right? As you are probably aware from my recent posts, I have been trying to read up about this strategy. Are you saying that you use this strategy often? Do you do Calendar spreads most frequently or is it just one of many strategies you employ?

I am getting closer to giving calendar spreads a try. I read somewhere (probably McMillian's book) that one should try doing Calendar spreads with an Index option, like NASDAQ. I know there is a QQQ index, isn't there also another NASDAQ index too? Do you agree that this would be a good way to start out? I guess they recommend using an index because it is less volatile and less affected by news and earnings etc..., which for a neutral calendar spread would be to my advantage.

I like the idea of taking advantage of time rather than trying to predict market direction.

Do you have any suggestions on how to integrate Calendar spreads with selling puts and calls in an overall low risk options strategy to create income?

I am learning a lot but I fear not enough. I am still in a situation in which my job is being relocated and I will basically be "put out on the street", Damn Boeing.... if I can't find a new job. I was hoping I could learn enough to rely on investing until something comes up. So far I have been doing ok with my options trading (practicing for when I will need the money for real). But everyone seems to be saying it can't be done and one shouldn't rely on options trading. I don't have many other choices.

Thanks
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