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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 (7703)	6/19/1998 8:31:00 PM
From: Joe Waynick	Respond to of 14162

Thanks again Herm! I never realized I could search like that. It brought up dozens of messages about recovery spreads. This stuff is great!

To: Herm who wrote (7703)	6/19/1998 10:17:00 PM
From: Terry Maynard	Read Replies (1) \| Respond to of 14162

A lurker question: I don't understand the mechanics of the recovery spread when a stock that you have cc'd gaps up. What happens to the existing cc's? Don't they have to be covered before executing the recovery spread? This is where I am confused. As always thanks for your help Herm. Your consistency and generosity are a benefit to us all. Terry PS SOC is around 11 and some its Jul and Oct 10 strike premies are 2 1/8 and 3 1/4 respectively and Jul and Oct 12.5 strike premies are 15/16 and 2 respectively. What do you think?