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

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To: Douglas Webb who wrote (8550)9/13/1998 3:18:00 PM
From: VincentTH  Read Replies (1) of 14162
 
Doug and Herm,

On a related note, in this week's Barron's, Larry McMillan wrote an
article suggesting doing a Calendar Spread, or a back spread to
take advantage of the volatility of the market.

His idea of doing a Back Spread (selling a long term call,
and buying twice as much short term calls with a higher strike
price) seems appealing. The only drawback he said is that
the shorted long term call is considered naked. Now, if we already
own the stock, then that is not a problem.

I would like to solicit comments from you, Herm and other experienced
Option investors on McMillan's article. Sounds like a very good
addition to our CC toolbox.

//Vincent -- too lazy to work out the math
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