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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: David Wright who wrote (10687)5/10/1999 11:14:00 AM
From: tuck  Read Replies (1) | Respond to of 14162
 
Dan,

He's dead on with regard to naked put writing. Commissions are less, and the parked collateral earns interest. McMillan covers this. I'd do a bit of this if I had 50k in my account. Which in a couple of months I will.

Meanwhile, EDFY's option prices are looking more realistic, but the stock is moving fast, threatening to break 14 now. The time premium is mostly gone from the May 10s, and now is the time to roll. I'll quit cluttering the thread with blow-by-blows now. Will get back to y'all when I'm done. Just thought it might be interesting to folks new to option trading to see what happens with option prices when a stock gaps.

Ciao for Now, Tuck



To: David Wright who wrote (10687)5/10/1999 12:47:00 PM
From: Teresa Lo  Read Replies (2) | Respond to of 14162
 
Well, if you look at the math involved, selling naked puts is the equivalent position was covered call writing, but with 2 less commissions. Larry MacMillan has a good book on it...but the best one for most investors is one published by the New York Institute of Finance called Options: A Personal Seminar
amazon.com

Take care.