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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: RDHickman who wrote (9519)	1/24/1999 8:55:00 AM
From: RDHickman	Respond to of 14162

Correction - Herm & thread members - Before I get in deep do-do, I need to clarify my comment that Roth differs with McMillan concerning repairs. Roth says, page 282, while recommending McMillans book, that "Its coverage is extensive but tends to be quite technical. One drawback is the statement in the LEAPS chapter that ""LEAPS are nothing more than long term options."" While tautologically true, this characterization misses the essence of LEAPS." O.K., so I had to look it up - tautologically: definition: needless repetition of a statement, idea, or word; also an instance of such repetition -. Not sure this is the best word Roth could have used but I think, having read the rest of his ideas, that he was extending on his contention that just as "most" (my quotes) people, if they consider Options at all, consider them to be speculative, and further that when considering LEAPS, "most" (mine again) equate the two, Options and LEAPS, with the same negativity. Roth, I think, not only recognizes the value of using Options and LEAPS, but draws a distinction between the two as they are used together, which McMillan did not. I think that McMillan provides "almost absolute" (mine again) repair strategies for particular Conventional Option positions, while Roth continues McMillan's fine work with similar, but expanded overviews due to a comprehensive explanation of the "added value" (mine) that LEAPS considerations give to McMillan's recommendations. Whew! Hope I got out of that one! Note: One distinction referred to - Conventional Options. You see, Options are no longer Options, they are Conventional Options, when discussed in tandem with LEAPS, because when used together, the "old play" becomes a "new play" with subtle and positive advantages due to the "time" component. O.K. - O.K. Nuf said!