How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Herm who wrote (7396)	5/4/1998 4:53:00 PM
From: VincentTH	Read Replies (2) of 14162

Herm, Re: Have you ever experienced being called out of a LEAP/CC spread? Do most of your CCs expire worthless and you get to keep every penny! No, I have never been called out of LEAPS spreads, the reason being I selected short term calls (2 mos out) with an OTM call option. I also look to cover at the 50% mark, compared to the 25-30% mark on CCs. The reason is obvious: With the stock, the strike is often just a couple of points above the NUT, whereas with the LEAPS spread, the strike price ought to be higher to cover the time value of the LEAPS. That said, I am afraid that I may be called out of my INTC LEAPS, if the trend continues. I had expected that INTC would have another flat quarter, but the stock jumped recently. That was a bumper, 'cuz I had a chance to cover when INTC was at $72, but did not do it, since I needed the money to double down on SMOD that was selling at $21 at the time.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next