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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (11239)	7/19/1999 10:09:00 PM
From: Tom K.	Respond to of 14162

...you can write calendar spreads which are equal to a covered calls against the LEAPs... Herm, I was thinking that the question asked was with regard to the same month... hence, buy (long) the near strike, sell (short) the far strike (the near strike "covers" the short). Don't have to go to LEAPs with this. This would be a debit position CALL spread. Essentially it's selling a call and then protecting (or covering) the position with a closer in strike instead of having to cover with stock. This is just a cheaper way to do CC's. Just another approach. Tom