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: Herm who wrote (9896)	3/21/1999 11:01:00 AM
From: NateC	Read Replies (1) of 14162

I really like the CS LEAPs for this stock. With a upward price move pending a WINs approach might go as follows: Buy 5 to 10 CS 10 JAN01 LEAP @3 and wait for a price raise of say $9.00 before writing the spread selling (CCing) 10 JUL CALLs @ 1 3/8+. At 1 3/8s estimated value would generate a 46% rate of return against the LEAP surrogate (cost $3) you used for the call ($1 3/8). Another $2.00 (25%) on the stock if the CC is exercised and you are called out. --------- Herm....I've followed this great trade. and I've followed CS a bit since then. At no time since that....have these numbers been so great. How did you discover this.? Where do you look for the cheap LEAPS? thanks!!

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