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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: Captain Jack who wrote (12065)	12/14/1999 8:35:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Hi CJ, Ask your broker if you could write calendar spreads. You may want a margin account in the event you are called out of a LEAP and have to exercise the LEAP to deliver the stock to your CCer(s). Basically, you use the LEAP as a surrogate to the stock. The LEAP strike price represents the downstroke value for the stock. Thus, you are covered provided you sell CCs above your cost for the LEAP and the strike price. So, a $4 LEAP with a strike of $30 means you need to clear $34 net. Any appreciation in the stock price before you write the CCs means easy 25% for a CC three months out at a CC strike of say $35 or more. All depends on the upward move. That is why you NEED to time them following a WINs approach. Make sure you get the free newsletter at coveredcalls.com. Next month, I will be covering CCing LEAPs with exclusive info...... hint! :-) Otherwise, we have plenty of post on the forum below to get a better feel. LEAP SPREADS siliconinvestor.com LEAPs siliconinvestor.com Thanks for your question CJ!