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: Teresa Lo who wrote (10696)	5/11/1999 12:54:00 AM
From: NateC	Read Replies (1) of 14162

Good point, IS.com. I agree......actually Trester, McMillan,....all the authors of about 8 texts I have on options.....ALL say that naked puts are like CC's....but more efficient...and less costly. they are...however....for people who have day gigs (jobs)...and aren't in front of the screen.........more scary. If I've sold a naked put at, say, $130, on a $140 stock....and it tanks to 115, my naked put burns me big time. I know....holding the underlying, when I've sold the CC......basically does the same thing.....but somehow I feel more in control...if I've CC'd...and own the underlying. Someday....after I've gotten better at CC's....I'll do more naked puts. I've found that doing covered combinations.......selling an upstrike CC, and selling a downstrike Put.....(which is naked, even tho I own the underlying)....is a good way for someone who is not too experienced....to get into naked puts. and then our friend Wade Cook....(friend?) would say that you should do a bull put spread...instead of a naked put....if it makes you sleep better to limit your downside risk

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