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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: PeterCS who wrote (12259)1/26/2000 12:59:00 PM
From: OX  Respond to of 14162
 
>>>I also meant to say if the stock falls will the leap fall as much as the shorter term option? We would
actually like the stock price to not move and the option to lose its premium. I can't see this
happening with the leap in the short term.<<<

if done correctly (right strikes),
as the underlying falls, the LEAPS won't fall as fast as the near term CC.

(this is not advocating this strategy, but just commenting on characteristics of options vs LEAPS at specified strikes)