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: NetBuyer who wrote (9435)	1/12/1999 8:17:00 PM
From: Herm	Read Replies (1) of 14162

Wow NetBuyer! What a surprise. Just remember, only about 7% of stock brokers has the extra license for options. Those fellows would not be working for a discount broker if they knew anything. That is not to say there are not some sharp discount brokers. I've had my run in with some of my brokers where I explain trades I made that did not violation of "A Free Ride." That's when you trade in/out in less than three days before "settlement." I purchased the stock on margin which technically means I paid cash for the purchase. I pay the commissions in and out and these guys sometimes allow me to do it. Other times they slap me with a 3 month penalty. Meaning, no three day grace! The last run in with them was about writing CCs against LEAPs. In other words, spreads. They tell me I can do it and when I tried they indicated that they don't allow that because I'm naked! Heck I am. I had the long stock unmargined and the long lower strike price calls and short calls balanced out. All cash purchased positions. I'm looking for a more option friendly brokerage. Thanks for your story!!!

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