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

To: Pat W. who wrote (1049)	6/14/2001 9:18:29 AM
From: adairm	Read Replies (1) \| Respond to of 5205

<<I do not have time to manage actively>> Really? How long did it take you do the analysis for this post? 15 minutes? Couldn't you do this same analysis on the Sunday night after options expiration once a month? I can see where it takes close monitoring if you want to sell, buy back, sell, buy back, etc. Using LEAPS as the vehicle for a CC has one benefit: You get a large payday today. That is, you can get a larger premium now. But it takes a long time for it to lose value. It's well established that the most profitable way to CC is to sell a series of front month calls. However, you make your money slowly. If you need a larger premium now, sell LEAPS, but be aware that if you do, you will not make as much as you would if you sold a series of shorter term CCs. And, really, aren't you going to be following the market anyway? Is making a trade once a month really that much trouble? Just my thoughts, Adairm