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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: FaultLine who wrote (138)	4/22/2001 10:17:36 AM
From: PoetTrader	Respond to of 5205

Thanks one and all...I will stick around and meander over to Dummie Options thread as well. Best, PoetTrader

To: FaultLine who wrote (138)	4/22/2001 2:49:22 PM
From: TShirtPrinter	Read Replies (2) \| Respond to of 5205

Hang in there Poet Trader, Given the group here the scope will grow quickly. Nobody's dummer than me. Here's an example of what I mean. In order to reduce margin, I have bought deep ITM leaps as a replacement to stock ownership. Then I have sold CC's out just a few months. I may buy calls & puts with funds I get Monday because I sold CC's on QCOM and got called out. Very short term tho. Tony PS Maybe we could include a support group discussion on weekends. I sold a bunch of CC's 4 minutes before Mr. G lowered the rates. <g> Dumb or bad timing...

To: FaultLine who wrote (138)	4/22/2001 10:35:45 PM
From: JGoren	Read Replies (1) \| Respond to of 5205

Dale, i will delve into your leap question. Think of buying leaps like you are buying the stock except that you pay less for "owning" the stock and you have a drop dead time at which the underlying stock has to reach your target (the strike price). If the stock doesn't move above the strike price within the expiration time, unlike owning the stock you lose all your money. You have to assess how quickly you think the stock will move up. If there are problems, and there usually are with new technologies, systems, etc., the delay may keep the stock from moving where you'd like it to be.