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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Linda Kaplan who wrote (6221)12/21/1997 10:39:00 PM
From: Philip B. Reitano  Read Replies (2) of 14162
 
Linda,

Another plan of attack which has worked for me is; VVUS bought the Jan 12.5p because the stock still looks soft to me. If it drops some, I will then sell deep in the money puts, Jan 22.5p. and a cheap upstrike call incase the stock gets it together. Maybe 17.5c for Jan ,March or April depending on the premmies.

The object is to leg in more than the spread, which would be 10pts in this case and maybe enough to buy the cheap calls.

Happy Trading,

Phil
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