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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 (10751)	5/12/1999 12:40:00 AM
From: tuck	Read Replies (1) \| Respond to of 14162

I.S., I think the main advantage of CCing versus naked put writing is that one can use margin to enhance the return of the CC. The interest income from parked collateral cannot compete with that, IMO. Also, it is theoretically possible to hold a stock one is CCing for long enough to be taxed at a lower rate. In practice, the volatility -- and thus the good premiums -- usually dry up well before then, and the trader then sells and looks for greener pastures. But it's really the judicious use of margin. I try to use no more than half of what's available to me, and that seems to keep me out of trouble. Cheers, Tuck

To: Teresa Lo who wrote (10751)	5/12/1999 8:19:00 AM
From: Herm	Read Replies (3) \| Respond to of 14162

Hi Forrest, Thanks for that offer to discuss the VIX and how it may facilitate better option trades or market movements. We would appreciate what light to could share on the topic. Help us see into the mind of the MMs. We have a wide range of experience on this forum and I hope we are not snowing the new lurkers. Let's take this time to point out to new curious investors to the CBOE's cboe.com overview. For CCing, check out webbindustries.com for a summary of the post on this forum. They can also pick up free Excel templates like David's webbindustries.com and other to look over and start add to their options tool shed. They can also view online or download the excellent CBOE Options Interactive ToolBox tutorial. cboe.com Perhaps, we can add this to our reading list. We can start by reading about volatility at cboe.com. Where do we go from here Forrest? Thanks again for your patience and generosity! :-)