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To: Alastair McIntosh who wrote (9448)11/23/2004 3:14:36 AM
From: Sam Citron  Read Replies (1) | Respond to of 13403
 
OT Alistair,

Yes, the 25 pair would indeed have been risky by itself, but if combined, say with a 30, 35 and 40 pair, it may have been a worthwhile trade. Another consideration is that the spectrum approach might allow greater flexibility as to the time(s) of closing out the positions, possibly allowing more time premium to be dissipated, as you would presumably have an expanded breakeven range.

Just a thought,
Sam



To: Alastair McIntosh who wrote (9448)11/23/2004 11:25:27 AM
From: willcousa  Read Replies (1) | Respond to of 13403
 
I often sell leap calls on my core tech stocks because the stocks are so volitile that over a long period of time I usually have several chances to buy the calls back cheap. Also I get a tremendous amount of time premium in doing that. However, the option premiums for leaps have not been that exciting for over a year now IMO. Will