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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: Guy Gordon who wrote (11791)	11/7/1999 5:10:00 PM
From: OX	Respond to of 14162

see #reply-11837421

To: Guy Gordon who wrote (11791)	11/7/1999 5:32:00 PM
From: Guy Gordon	Respond to of 14162

Following up my own question, would it be better to use a "fence"? Write CC's just above the money and use the proceeds to buy puts just below the money. If I sell deep ITM calls, I'm basically out of the stock until I buy them back. With a fence I participate in the stock movement between the put strike at the bottom and the call strike at the top. (I know that's a simplification, but it's a complex subject so I need simplifications. :-) Would there be any advantage to the fence over the deep ITM CC's? One advantage might be flexibility. With the fence I could terminate either side independent of the other. I don't know. I'm going to have to think about it some more. But does anyone have real experience in this area they could share?

To: Guy Gordon who wrote (11791)	11/7/1999 7:24:00 PM
From: Herm	Read Replies (1) \| Respond to of 14162

Hello Guy, Welcome to the forum. Your questions are right in line with defensive strategies that indeed have been successfully employed for conditions you mentioned. May I suggest you download the WINs PowerPoint presentation off my web site at coveredcallswins.com. You will quickly get a full picture of all the possibilities. Otherwise, here are other discussions on the subject: Defensive Repairs siliconinvestor.com In The Money Defense siliconinvestor.com Buying Cheap Insurance with CC Premies siliconinvestor.com The Value of Sideshows siliconinvestor.com