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


To: BDR who wrote (312)4/29/2001 3:05:13 PM
From: Uncle Frank  Read Replies (2) | Respond to of 5205
 
>> I find <calendar spreads> interesting and am trying to them understand better.

Roth does a pretty good job of describing them in his book, LEAPS.

>> covered call writing... certainly wasn't the most effective method of dealing with the sell off over the last year, so I am trying to develop my own inventory of investing tools.

Hmm, if one had been consistently selling front month slightly otm cc's on qcom since April 2000, I think they would have retained most of their profits, since those have yielded about 8%/month. Unfortunately I didn't begin until January of this year.

duf



To: BDR who wrote (312)4/29/2001 5:32:22 PM
From: jghutchison  Respond to of 5205
 
Dale,

One can reduce the risk of a basket of calendar spreads by maintaining a market neutral strategy, ie maintaining the delta near zero by adjusting the positions.

Any decent options analysis software will provide the figures and graphs.

Jack Hutchison