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Guy,
Most of my trading is done in an IRA where I can only write covered
calls. In my regular account, I've mostly simplified to buying and selling
LEAP options. In the past, I have used credit spreads on both sides of the
channel (Calls above, puts below) for OEX options, but never naked puts
because of the high margin requirements. Credit spreads (selling the call/put
just outside the channel, buying the call/put that is five points more out of
the money) minimizes risk and reduces margin requirements versus naked
options. However, I've found, that for me at least, keeping it simple by just
buying and selling LEAPs is more enjoyable and profitable.
Jim
-----Original Message-----
From: Guy Gordon
Sent: Saturday, May 10, 1997 4:58 PM
To: MetaStock-List@xxxxxxxxxxxxx
Subject: Re: Iomega
I especially liked your point about selling covered calls at the top
of the channel. I usually just sell the stock. I like your point
that if the stock rises above the resistance line, you let it be
called away. Good move, but tricky timing, since options only expire
once a month.
Have you ever written a put with a strike price near the bottom your
channel? If the stock goes down, like you think it will, you get to
keep the premium, and you "have" to buy the stock at the price you
wanted. Again, very tricky timing.
On Sat, 10 May 97 20:37:51 UT, Jim wrote:
>Guy,
> I hope it's smart <G>. Time will tell. At least it's consistent =
with my=20
>trading strategy and that's what I keep trying to do. Be consistent =
<G>!
>Jim
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