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

To: PAL who wrote (1892)	8/10/2001 1:14:37 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 5205

I wrote: Besides the fact that <strangle> is a complicated play, it requires the use of margin, which is not allowed in sheltered accounts. You wrote: Now I challenge you to to show me that CSS that I outline in previous post is riskier than just CC. Once again, I'll defer to my expert witness, Harrison Roth. On page 80 of his book, LEAPS, he makes the following observations: STRATEGY: Writing Covered LEAPS Combinations (which he later states are more commonly referred to as "strangles") OUTLOOK: Very Bullish ADVANTAGES: Combines covered Call writing with Put writing; collect two premiums DRAWBACKS: Complex; needs monitoring; Double Commitment DEGREE OF RISK: More intense than stock SUMMARY: Covered combination writing, like its cousin covered straddle writing, is a complex strategy suitable for those who are quite bullish and sophisticated. IMHO, even a dummy should recognize that a complex, high maintainance, very bullish options strategy is inappropriate in this market and, in particular, for this forum. duf