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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: Hectorite who wrote (11308)	7/30/1999 2:17:00 AM
From: Hectorite	Read Replies (1) \| Respond to of 14162

Some corrections to my last post: 1) I said "not easy to get the full spread." Let me change that to "near impossible." I messed around looking at some option quotes and couldn't find anything close. 2) I also said "park cash." Change that to "park somebody else's cash." 3) I said "50K", make that "1M" (2000 x 5 x 100). That was one helluva sweetheart deal.

To: Hectorite who wrote (11308)	7/30/1999 1:47:00 PM
From: Night Writer	Respond to of 14162

Hectorite, I think you hit the nail on the head with one exception. 2,000 options = 200,000 shares x $5 = $1,000,000 in the bank. With a $1,000,000 he could get let's say 5% annual, or $25,000 interest. He was 1/16 off the full spread on 1/2 the order or .0625 x 100,000 = $6,250. So we reduce the $25,000 by that and come up with $19,750 to the good with the chance of making some big bucks if Compaq makes another run this fall. Makes perfect sense to me. I've played Bull spreads before, but was never able to find one this good on the same day. So I never thought about it. Thanks, NW