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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: jim#2 who wrote (7879)	7/13/1998 1:32:00 PM
From: Michael Schoonover	Respond to of 14162

Just received the new issue of Tech. Analysis of Stocks & Commodities on Sat. There is an article on basic option trading and one topic they touch on is writing CC's against leaps. Their suggestion was on a basically flatly trading stock, buy deep in the money leaps with about 18 months of expiration left and then write slightly out of the money calls every month for about a year. Anyone else see this article yet, or have a different take on it??

To: jim#2 who wrote (7879)	7/13/1998 4:44:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Hi Jim! There is much that can be said about LEAPs. The more I study CCing the more I appreciate the role of LEAPs in one's portfolio. Some of the largest active stocks out there are out of the price range of most investors. Yet, with LEAPs its possible to exploit the big stocks and at the same time run circles around fund managers who often have restrictive and cumbersome investing guidelines. When they have large cash reserves to invest they often inflate the price of stocks with massive block purchases. The opposite is also true! They can depress the price of a stock in a very short period of time! MMs feed on that volatility and make it worse! That is why I feel CCing can save your tail many time. It provides the extra capital resources to hedge and leverage your stock investments and can make the difference between losing and making money in the stock market. Recent SI dialog on CCing with LEAPs as the base. Message 5159754 Message 5155135 Message 5153132 Message 5153003 Message 5152899 Message 5140360 Stocks and Commodities Article on Basic Options Techniques traders.com Good Article on Proactive vs. Reactive Trading! traders.com Individuals Discover Option Trading! (Let's reel them in folks! CCing is the greatest!) usatoday.com Heeding level of risk crucial to success! usatoday.com Conservative strategies can limit risk usatoday.com Enjoy! The best of good buys! Herm