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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 (7570)	6/9/1998 8:15:00 PM
From: Clean	Read Replies (1) \| Respond to of 14162

Herm, I can't tell you how timely it was to find your message. I've been doing CC's on stock I own and came to the conclusion it was too cash intensive and there was a better way. What brought me to this thread was that I had a question - could you write a covered call on stock you own with a LEAPS? obviously, the answer is yes. But I am excited about this CC on a LEAP, but I'm not sure if I understand it. eg - you buy to open X LEAP calls (uncovered) then sell to close what? and when? Also, what kinds of LEAPs do you typically look at? My fancy is all telecommunications/technology. some oils. right now CC on noka, qcom, ericy. TIA. Regards. Clean.

To: Herm who wrote (7570)	6/9/1998 9:02:00 PM
From: Tom K.	Read Replies (2) \| Respond to of 14162

Herm, I've been a lurker on this thread from the start, and I want to thank you for maintaining this excellent forum. I've studied and dabbled in options for a long time (purchased a first printing of McMillan's book back in the eighties), but over this past year have become a serious fan of CCing. This thread with its excellent contributions from members has been a valuable help. My strategy and approach is somewhat different from what I see most others do (my focus is on cash flow from CC's with a goal of 40-50% annual return), however there are a lot of nuggets in the responses on this thread that have been a real help. I've watched a lot of other threads with good ideas wither and die because of the lack of a driving force.. I appreciate your keeping this one alive. I finally joined SI and this message is simply to express appreciation to you and to the other great contributors on the thread. Tom K.

To: Herm who wrote (7570)	6/10/1998 11:43:00 AM
From: the options strategist	Read Replies (2) \| Respond to of 14162

Herm, thanks for your detailed response. You tend to primarily use low cost stocks. Is there a reason for this as opposed to using stocks such as dell, etc.? HOWEVER, I don't understand the list of rate of return you posted for Caroline, i.e.: "Nov98 Call Buy 5 @ 10.0 Sell 10 @ 12.5 ($156.50) $3718.50 Outperforms Stock Ownership in price range: $10.81 - $14.69" Doesn't this assume one already own 500 shares of the underlying stock? I've got to study and digest the dialogue you and Caroline have.