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

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To: Jonathan Thomas who wrote (10761)5/13/1999 11:16:00 AM
From: tuck  Read Replies (1) of 14162
 
Ryan, Dan, Dave, et al.,

Got filled this morning on 4 June 10 Edify puts @ 1 1/16. See post #10761 for my expected returns, pretty much unchanged by the extra $25 I paid. Feeling pretty good about this position now.

I've started to look at the naked put writing thread. Turns out lots of those guys buy protective puts just like we do. Which makes it a credit bull spread, a concept promoted a year or two ago by Steve (hpeace) on this thread. I have to look more closely at the margin requirements for naked puts. People on that thread have posted a couple of rather complicated formulas that I haven't tried yet; it could be that what I consider to be the chief advantage of CCing versus naked put writing -- the ability to use margin to enhance returns -- may not even be true. I'll check on this soon if no one steps forward to clarify it for me.

Time to shave and get breakfast first.

Cheers, Tuck
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