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Strategies & Market Trends : Advanced Option Strategies

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To: Joe Waynick who wrote (11)	7/6/1998 3:08:00 AM
From: B4TheBell	Read Replies (2) of 355

Joe, Re: your posting #11 "I'm also trying to understand what Herman Matos calls "Recovery Spreads" and "selling covered calls on LEAPS." I don't think McMillan writes of such strategies. I think those are terms Herman coined. I'm not quite sure how recovery spreads work, but selling CC's on LEAPS can't be anything more than setting up calendar spreads." McMillan discusses covered calls on LEAPS in Chapter 25 of his first book, "Options as a Strategic Investment". He outlines covered call writing in the basic sense, selling LEAPS against stocks owned, and also what you are describing, calendar spreads using LEAPS, among other LEAPS strategies in detail. As for "Recovery Spreads"... The strategy has been around for quite some time but Herman certainly gets credit for bringing it to my attention. It has gotten me out of a few pickles in recent months... All: Check out this thread for option writers over on Yahoo! Some very sophisticated strategies being discussed there... messages.yahoo.com@m2.yahoo.com&type=date&first=1 Happy trading, B4

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