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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: Herm who wrote (7389)	5/4/1998 11:48:00 AM
From: drsvelte	Read Replies (1) \| Respond to of 14162

Herm: I use DLJ too. I assume that to do a transaction like the one you described, you would need to do it with a broker. Or is it possible over the Internet?

To: Herm who wrote (7389)	5/4/1998 1:03:00 PM
From: VincentTH	Respond to of 14162

Herm, Re: Have you ever been actually called out of LEAPs/CC spread? No, because I would (have to) sell OTM calls, and look to cover on the first dip around 50%. IMHO, the LEAPS spread is only advantageous on growth stocks like Intel, CPQ because we need large time value premium in order to remain above the NUT. The other problem with LEAPs is that not all stocks have LEAPs, only those with large intraday volume. Greg Higgins is an experienced player with LEAPS, but he no longer frequent our forum ever since that great BPS debate :-). The other problem with LEAPS that you did not mention is that the value of the LEAPs are not marginable.