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

To: LKO who wrote (832)	5/29/2001 10:00:19 PM
From: Uncle Frank	Respond to of 5205

>> comparison was more with a buy-write strategy where you have lots of dough (cash/margin)and were going to use it with first to buy the stock (for the sole purpose of being able to write CC) and then write CC on it. DITM (or maybe ITM) put in that case would require slightly larger cash/margin up front with similar results while leaving the cash/margin uncommitted to equity. I agree that buy-write is very much like put writing in terms of returns. Ownership of the stock isn't the prime consideration in either case, and the risks seem similar should the underlying take a dive. duf