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: RDHickman who wrote (10081)	3/26/1999 5:48:00 PM
From: Herm	Read Replies (2) of 14162

Thanks Dick! One more question? Will they allow first buying the LEAP and then sometime later selling (writing) the CC CALL to complete the spread? The reason for this would be to capture some price appreciation before the write. That would allow more flexibility. Otherwise, the LEAP/CC spread would require execution around the time the stock is tagging the upper BB and RSI has peaked. Mr. Stock.com's services! Placing Option Orders: The following trades can be placed over the Internet by going to our TRADING SITE: Buy Call to Open Sell Call to Close Sell Covered Call to Open Buy Call to Close Buy Put to Open Sell Put to Close The following trades are allowed, however, they require special authorization and handling. Because of this, they need to be executed through our live broker desk during market hours. There are no extra COMMISSION charges for this added service. Sell Uncovered Call Sell Uncovered Put Credit Spreads Debit Spreads Naked index options are not permitted! Requirements to write naked equity options: Must be done in Margin Account. Naked calls & puts initial requirement are greater of 25% of underlying security, less any out of the money, plus premium or 15% of underlying security, plus premium. Naked call accounts require $25,000 equity over and above requirement. Naked put accounts require $10,000 equity over and above requirement, not to exceed 100% of assignment costs. Equity and Index option spreads are also available at no additional charge, but must be placed with a live broker. Must be done in Margin Account Bull spread requirement is 100% of debit and $2000 minimum equity (Debit Spread). Bear spread requirement is lesser of uncovered requirement as above or difference in strike price (credit spread).

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