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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: jebj who wrote (12246)1/24/2000 11:49:00 PM
From: Casaubon  Read Replies (1) | Respond to of 14162
 
you were correct I was talking about shorter term short calls written against the long LEAP. Another problem I don't like about the LEAPS are finding liquidity. The stocks I'm most interested in just don't trade enough volume on the options market. You end up being at the mercy of the market maker. I'm focusing more on the technical analysis to time entry and exit for the stock than utilizing the options market to bring in CC dollars (although I think Herm has a great strategy and I follow every word written on this thread).

A recent example would be PRXL with entry at 10 1/16. I'm basically a bottom feeder I guess <ggg>. I find that if I can time my entry properly, I can do just as well with the stock ownership as a WINS strategy. I'm even going to try leveraging myself with some sideshow options purchases soon.



To: jebj who wrote (12246)1/25/2000 2:20:00 AM
From: NateC  Read Replies (1) | Respond to of 14162
 
JEBJ....what I am doing is buying the LEAPS calls long....instead of buying the stock outright...and then CCing them. I find positions where i can recapture up to 10% of the LEAPS long call price/month....so that theoretically after 10 months...I own the long call free and clear

It's basically a diagonal calendar spread......now I buying the Jan 2002 calls long...and CCing into February and March...Herm likes to go out longer on the CC's,as you know