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: Russ B who wrote (8009)	7/30/1998 8:35:00 PM
From: Herm	Read Replies (1) of 14162

Hi Russ, Interesting! You are right about McMillan's Chapter 11 on Ratio Call Spreads providing the technical components of the recovery spread we have discussed on this forum. The stock itself is collateral for the CCs along with the long calls you buy. Doug's online formula is straight forward in plugging in your net cost, number of shares, and additional new dollars you wish to add (if any) and then pinpoints the outcomes IF the stock rises to those strike prices in the amount of time as predicted. Of course, it is a whole lot easier to setup a positive outcome using the BB and RSI as your guide. The spread and technicals improve the odds and payoff! Needless to say, if you practice our CCing guidelines you can avoid having to make such repairs in the first place since you are always making some profits in up, down, and sideway price movements. We will help you and others. Nobody on this forum should lose money!

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