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: Herm who wrote (5739)	11/3/1997 12:56:00 PM
From: Zach E.	Read Replies (1) of 14162

In essence, what McMillan is saying is that if you only have to front 20% of the value and you stand to make the same profit as covered call writing then you have more leverage with naked PUTs. Herm, This statement is certainly true, but if you're going to use that much leverage, you need to make sure that you have a point at which you're willing to get out of the trade (and hope that it doesn't gap below that point!). Tom Trader had a nice post on writing naked puts at, techstocks.com Zach

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