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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (5638)	8/30/1999 6:42:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

edamo, remember you can write a covered call against the call you own, same as stock I use fido. I called and checked, and they don't let you do that. I have heard of this practice (mainly from Fido reps looking down on it), but have no experience in it. What brokers let you write calls on ones you own? Is this akin to shorting against the box? If I understand the strategy you are describing for LEAPS (stock replacement, not speculation), you would basically never buy ATM? In a stock like RMBS, where at the money is 50% of common, that is a pretty easy decision as an incredible amount of volatility seems priced into the option. However, I don't know that Q is any less volatile (and certainly more upwardly mobile this year :), yet premiums are priced lower. Perhaps other factors, such as float, are baked into the equation?