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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: Douglas Webb who wrote (8550)	9/13/1998 3:18:00 PM
From: VincentTH	Read Replies (1) \| Respond to of 14162

Doug and Herm, On a related note, in this week's Barron's, Larry McMillan wrote an article suggesting doing a Calendar Spread, or a back spread to take advantage of the volatility of the market. His idea of doing a Back Spread (selling a long term call, and buying twice as much short term calls with a higher strike price) seems appealing. The only drawback he said is that the shorted long term call is considered naked. Now, if we already own the stock, then that is not a problem. I would like to solicit comments from you, Herm and other experienced Option investors on McMillan's article. Sounds like a very good addition to our CC toolbox. //Vincent -- too lazy to work out the math

To: Douglas Webb who wrote (8550)	9/13/1998 5:18:00 PM
From: Dr. No	Respond to of 14162

Thnaks for your very informative response. I wrote the CC a couple of months ago and my net cost is over 10. I know I missed the opportunity to buy back the CC a few days ago. that is why I was looking for the best play now instead of buying the CC at a higher cost. I see that it is best to buy back the cc. Doug, I am not familiar with Three Line Break and Kagi. I will see if you have any explanation on your web site. If not, can you explain or refer me to a post of a book where I can read up on it. Thanks again for your input. Dr. No