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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: SFW who wrote (6630)	1/31/1998 11:59:00 PM
From: hpeace	Respond to of 14162

actually if the stk goes up quick, then I'll repair by taking profit off the table and rolling up. I also might buy an april 45 call now. then when the stk is 40+. I'll close the spread out and have the call to ride it up. at the time I did smod, it required almost no cash to do the spread. but it would have taken allot of cash to buy 130 calls for april, I mean allot of cash. where as this took next to no cash to own the stk via bull put spread read mcmillan's 2nd book page76-78. the day I did this I almost stepped into the position for zero cash since I sold the naked put first and the stk went up then i bot the april 30 put. If I would have held out 2 more hrs. then I would have been sent a check for 13000 and still had the 130,000 margin that the spread gave me. since my credit would have been 11 and you only need a margin of 10 for a 10 point bull spread. does this make sense... only do this on a stk in real bull trend or you know it's gotta go up.