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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: margin_man who wrote (578)	1/21/1998 11:17:00 PM
From: ----------	Respond to of 2241

I agree Patriot.... if there is anyway possible to lose money in options, just ask. Chances are I've done it at least once. Best Regards, Doug

To: margin_man who wrote (578)	1/22/1998 9:51:00 AM
From: William G. Murray	Respond to of 2241

Good Morning Patriot, As for your comment "From experience, it's better to sell higher strike price call options", I am in total agreement. Back last spring when the volatility of the market was less significant, the strategy was successful as long as you were able to continue rolling option positions up or if you were successful in selecting a stock that was not trending strongly upward with the rest of the market. My response was to the question "can we buy long term calls and sell short term calls covered against them?" To that, the answer is Yes. To the question, "Is it a good move?", as you pointed out, "Not always." P.S. To date I've never bought a LEAP with the plans to sell covered calls at the same strike, however, on occasion after collecting several premiums, I've ended up rolling into calls at the same strike as the LEAP. Part of the beauty of covered call writing is rolling up or down when justified. Thanks for your input.