Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: jaytee who wrote (13579)	2/4/2001 4:52:14 PM
From: Victoria Walley	Read Replies (2) \| Respond to of 14162

Yes, it absolutely is the volatility that attracts me to RMBS... not a buy & hold stock for me. Option premiums for even way the heck OTM calls are very attractive. I would play the put side as well but that volatility works both ways, protective puts are expensive to buy. So I have been sticking with selling front-month OTM calls and buy them back on dips. I am learning more about LEAP spreads and find it would be the next logical progression to selling CCs on stocks, unfortunately my broker (Scottrade) does not allow it. Other than that, I am extremely pleased with Scottrade and think their service is outstanding... and I'm not ready to move my accounts. But I can certainly see the benefit to writing LEAP spreads using both calls and puts. Vicki