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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: Cedric Wynn who wrote (11336)	8/3/1999 7:05:00 PM
From: NateC	Respond to of 14162

CW.....don't know that it matters....but if you spend an extra buck and get the 2002.....you can CC it longer

To: Cedric Wynn who wrote (11336)	8/3/1999 8:48:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi Cedric, I would go for the 2001 IFMX LEAPs because of the time decay factor which picks up approx. half way the life of the LEAP. So, you would get more rounds of CCing with the longer LEAPs before you would unload them by forcing yourself to be called out or cashing out after an options expiration date. A two year LEAP gives you a solid one year of CCing by writing the calendar spreads. It would be fairly normal to write enough CCs to equal at least the original cost of the LEAPs and still cash it out at the end of the year in the black. In short, 100% to 150% ROI annually unmargined is not an unreasonable expectation using LEAPs as your surrogate for the stocks. Just apply WINs chart indicators and you have it made. Pick a stock you would not mind owning for long periods of time.