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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (29631)	1/21/2001 6:58:45 PM
From: minorejoy2000	Read Replies (2) \| Respond to of 65232

Thanks, Scott. Just saw my mistake as I was reviewing CBOE's option toolbox which pointed that out to me. Just trying to understand why KG4 (post 29625) explains using next month's otm covered calls. Wouldn't they be harder to sell (less premium) in a shorter time frame? Is that why you don't wait for the underlying stock to go up, but write the CC's right away, then buy them back as the premium quickly decays? Why buy them back rather than let them expire? In order to be able to write them again for the following month as the stock moves up again? I guess I'll have to try this on paper for a few months, comparing itm whith otm approaches to see the difference. Thanks for the book lead! M