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: Clean who wrote (7574)	6/9/1998 8:54:00 PM
From: Tom K.	Read Replies (2) of 14162

Clean, I believe that you buy the LEAPs to open (they serve as an inexpensive way to buy the stock) and then you sell short term calls to open against the LEAPS. As Herm points out, you should be able to do this for several months before the LEAPS begin to lose time premium and have to be closed out themselves. Personally, I do only CC's and naked PUTs and have yet to try using LEAPS. However all is explained in Harrison Roth's book "LEAPS." If you decide to try it, put in a post for us lurkers to learn from you. By the way.... what do you mean that CC'ing is too cash intensive? Good luck. Tom

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