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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (35323)	11/5/1998 12:02:00 PM
From: ViperChick Secret Agent 006.9	Respond to of 132070

there is a covered call thread that talks about it search for covered call

To: wlheatmoon who wrote (35323)	11/5/1998 12:30:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Mike, Nope. See my note to Chris a couple above this one. Covered call options rank a little above average risk for option income strategies. It isn't necessarily a bad strategy, but you have to remember that you are really shorting a put. Buy stock, sell call is exactly the same thing as holding cash and selling a put. You would be surprised at how many people think that covered call writing is safe while if you asked them to short a put, you would have to call 911. <G> However, the absolute premiums on some of these Leaps sure take a lot of risk off the table on day one of a buy write or a short put. MB