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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: Joe Waynick who wrote (7886)	7/14/1998 5:03:00 PM
From: jim#2	Read Replies (2) \| Respond to of 14162

Joe (or Herm or anyone)): Do you write CC's against LEAPS? What underlying stocks would you consider right now? What do you look for in an underlying? Lots of stability, or lots of volatility(for month after month writing)? Beaten down, Dogs of the Dow types (gm, mo, chv) ? or perhaps super growers like Dell (which would have incredible returns right now on CC's on LEAPS?) What would you think of this play: Dell closed today at 107 3/8 Buy Dell LEAP Call JAN 00 100 39 Sell Dell Call AUG 98 110 6 7/8 This is a 17.6% unmargined return for 5 weeks Do it every month until year end Dell always seems to have decent premies 3 or 4 strikes up, so even if it goes down, you can still write nice calls next month to get back. Pick up cheapo protection each month (Dell AUG 98 puts 13/16) and write fat calls? Any opinions would be great! Thanks jim