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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: NateC who wrote (10014)	3/21/1999 3:20:00 PM
From: RDHickman	Read Replies (1) \| Respond to of 14162

Nate, Did you miss Message # 9972 (just type the number in the Reply Box and hit enter)? This dialog helps a lot. Also in the last paragraph "LEAP SUMMARY" Herm, once again reduced information overload (and muddled thinking on my part) to concise rules for considering a written conventional CC on a L.E.A.P.S position. Hope this helps! /Dick

To: NateC who wrote (10014)	3/21/1999 5:22:00 PM
From: Herm	Respond to of 14162

I happen to own 500 shares of IFMX which I picked up when the stock was at $5.00. It had a nice gap up to $13. I sold five 7.5s IFMX LEAPs JAN01. I plan to cover soon and milk $$ IFMX another round. I may buy more. IFMX has hit a price support level. It should hold at current levels. An entry into IFMX might look like this: Buy IFMX 5s JAN01 @$4.5. Wait for a price increase to $9.50 plus and then write CCs for say the 10s AUG. @ 1 5/8s. You net cost is $5 LEAP strike + $4.5 =$9.5 before the CCs. The CC premie of 1 5/8s = 36.11% unmargined.