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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 (10408)	4/16/1999 10:12:00 PM
From: David Wright	Respond to of 14162

Yes, that is how I read the strategy. You have to wait for it to come to you. It seems to me that the optimal time to buy the protective put is when you write the covered call...assuming you waited for the stock to move up before writing it..per WIns strategy. Then you wait for the stock to fall back to the lower BB, and buy the upside protection call then. Of course, you are also likely doing sideshows with options that are much closer to being in the money. The protective puts and calls are just to protect against breakouts to either side, and should be very cheap. These are not, of course, the traditionally defined strangles, since you are legging into them one at a time.