SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Douglas Webb who wrote (4556)9/9/1997 2:41:00 PM
From: FishbackJ   of 14162
 
Hi Doug,

Yup, looks like a debit to me too. <g> I was thinking of a trade I recently did, and it just happened to create a credit......In any case, the credit or debit can be easily created, just by modifying the number of contracts bought/sold......

However, the more long calls you have, in ratio to the short calls, the more you'll make if the stock goes up. 3 to 2 is a "nice round" ratio, because you wind up with 10 long calls working for you, with (essentially) no cost except margin requirement...

The one thing you need for this kind of trade to work, is stock movement and of course, enough time.

Thanks for the correction,

Dick
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext