Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (10068)	3/25/1999 11:38:00 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 14162

I talked today to the folks at preftech.com and asked them about this. They do not do the Buy-Write, but I'm not sure a broker could do anything more than place a limit order at the ask for you anyway, something you can do yourself. Unless some broker has a reduced transaction fee for the combined Buy-Write, would you be gaining anything? If any of you experienced option traders have an opinion on Preferred Capital Markets (link above), I'd like to hear it.

To: NateC who wrote (10068)	3/26/1999 12:31:00 AM
From: tuck	Read Replies (1) \| Respond to of 14162

Nate, Did you speak to one of Ameritrade's Option brokers? I haven't done one in quite a while, but I seem to recall they would do it. You do have to call in, so the stock trade will cost more ($15 versus $8, I think). Dan has suggested simultaneous limit orders, but it's not the same as a buy-write; there is a bit of room for you to be burned if the stock and/or option is behaving in a volatile manner. You have to own the stock before you can write the options on it, unless you're approved for naked options. By the time you get confirmation of the stock buy (or naked option sell), the stock and option may have moved away from the limit you wanted on your option (or stock), so that technique won't necessarily work like a buy-write. It should work if your limits are pretty close to the price when you enter them (i.e. close to market orders, so they're likely to execute quickly). The point of the buy-write is that you're assured of a specified spread because of simultaneous execution, and unfortunately, there's no way for those of us not on the floor to do that. I'd pursue the buy-write, though I don't know of any broker doing it online. That would be a good suggestion, wouldn't it? Why don't we all email our brokers and ask them to offer buy-writes online? There may be technical reasons (related to the above) that make this unfeasible, but it can't hurt to ask and learn. Cheers, Tuck

To: NateC who wrote (10068)	3/26/1999 12:36:00 AM
From: Caroline	Read Replies (1) \| Respond to of 14162

Try Regal, they specialize in options. eregal.com. As a rule, they're tons better on the phone and through touch tone than on the web, though I have made successful trades on their web site. Caroline