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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: Linda Kaplan who wrote (6258)12/30/1997 6:39:00 PM
From: VincentTH  Read Replies (1) | Respond to of 14162
 
A bull spread is established when one buy say Jan25 and sell Jan30 on the same underlaying stock. The short Jan30 call is considered covered, thanks to the Long Jan25 call, but some brokerage house may require Margin Requirement should the Jan30 call is exercised.
This is essentially the repair techniques, whereas one double his stake in the stock by buying the call, and then sell a higher strike call to offset the cost.