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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: Teresa Lo who wrote (10706)5/10/1999 9:39:00 PM
From: Greg Higgins  Respond to of 14162
 
<<The advantage of CC is that you can leg into the position by only
shorting the call when the stock has appreciated, thus effectively
locking in the gain (well, to some degree, Herm would call it
"protection"). >>


The advantage of CC is that for most stocks, the ATM call will sell for more than the ATM put.