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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: patlew who wrote (6125)	12/14/1997 1:48:00 AM
From: Greg Higgins	Read Replies (1) \| Respond to of 14162

Lloy writes: I was responding to Mr Higgins' post #6118. Well, actually 6118 wasn't supposed to get out. If you look, you'll see that it was very incomplete (as compared to my other posts). I was meaning to cancel it. It's not as risk free as I had originally thought. The stock has a 3.6% dividend yield which makes it susceptible to being called away. Here was my original thinking: USX Steel Group (NYSE:X) is a cyclical stock which has spent the last 5 years between 25 and 45. The Jan 2000 25 Calls are going for 7 1/8. The Jan (1998) 30 calls are going for 1. If you can get 3/4 every month writing calls against the leaps, you've got a 100% return. I'll try to be more careful in the future. Sorry for the misleading statement; as I said above, I really had't intended for it to go out that way.