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<DIV>Hi Dave.</DIV>
<DIV> </DIV>
<DIV>What are you using to cover the put? When you write a put you must be
prepared to accept the stock and pay for it at the strike price you wrote.
If you are exercised you have no choice in the matter. With the covered
call you must deliver the stock if you are exercised, but you all ready own it
at a lower price than the strike you wrote.</DIV>
<DIV> </DIV>
<DIV>Technically the only way to cover a put is with another put of an
equal or grater strike price. For margin purposes you can also cover a put
by shorting the stock. So to have both a covered call and a covered put,
you could own the stock, sell the call, short the stock (or buy a put) and sell
the put. Trying to figure if this would ever be profitable, with
commissions, is giving me a headache. Basically it would take an extreme
move in either direction to overcome the coat of setting up such a
position.</DIV>
<DIV> </DIV>
<DIV>There are times when it makes sense to have a covered call (own the stock
and sell the call) and BUY an out of the money put. This reduces your max.
risk to the difference in the two strikes. For example, recently you could
have bought AT&T (T) at about 57. You could have sold a leap Jan
02 $55 Call for about 15. You would be protected down to 42 (57-15).
At the same time you could have bought a Jan 2000 45 put for 1-1/4.
Basically you have insured your position against loss until expiration in Jan.
2000 when you would have to buy another put if the position was still
open.</DIV>
<DIV> </DIV>
<DIV>Hope this helps.</DIV>
<DIV> </DIV>
<DIV>
Good luck and good trading,</DIV>
<DIV> </DIV>
<DIV>
Ray Raffurty</DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
pressdl </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:realtraders@xxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxx>RealTraders</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, July 14, 1999 9:17
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> OPT: Puts and Calls</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial size=2>
<DIV><FONT face=Arial size=2>A question relating to options.. Is it ok
to write covered calls and covered puts on the same equity in my
account (Same expiration date --obviously different prices)?? Does
it ever make sense?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial
size=2>Dave</FONT></DIV></FONT></DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Thu Jul 15 10:34:54 1999
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Reply-To: "RAY RAFFURTY" <rrraff@xxxxxxxx>
From: "RAY RAFFURTY" <rrraff@xxxxxxxx>
To: "kohath" <kohath@xxxxxxxxxxxxx>, <realtraders@xxxxxxxxxxxx>,
"Alexander Levitin" <alevitin@xxxxxxxx>
References: <4.1.19990714222544.00adb6c0@xxxx>
Subject: Re: Cordless Phones
Date: Thu, 15 Jul 1999 12:06:26 -0400
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<DIV>Hi Alex,</DIV>
<DIV> </DIV>
<DIV>You may be right, but more importantly, it may not work in a heavy storm
due to cloud cover. So if you're in an Atlantic hurricane (or Saharan
sandstorm) it won't work when you need it the most. Have any RT's tried to
use their Iridium phone under such conditions?</DIV>
<DIV> </DIV>
<DIV>
Good
luck and good trading,</DIV>
<DIV> </DIV>
<DIV>
Ray Raffurty</DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:alevitin@xxxxxxxx"; title=alevitin@xxxxxxxx>Alexander
Levitin</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A href="mailto:kohath@xxxxxxxxxxxxx";
title=kohath@xxxxxxxxxxxxx>kohath</A> ; <A
href="mailto:realtraders@xxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxx>realtraders@xxxxxxxxxxxx</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, July 15, 1999 1:31
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: Cordless Phones</DIV>
<DIV><BR></DIV>This is only hearsay. But someone told me that for Iridium
phone to work it need the satellite in direct visual line. That is it would
not work if you are in between skyscrapers, inside of the building etc. (It
will work in the middle of the Atlantic or Sahara). I want to emphasize that
it is only the story and I did not verify it (and not going
to).<BR><BR>Alex.<BR><BR><BR>At 01:54 PM 7/14/99 -0500, kohath wrote:
<BR><FONT size=2>
<BLOCKQUOTE cite type="cite">Hey, forget cordless phones at Wal-Mart for
$40, get an Iridium phone, you can use it anywhere in the world, they only
cost $3,500 each, and the call is only $8 per minute? I'll take
2. Just think, you can call you broker from the middle of the Sahara
desert, or, if your boat sinks in the middle of the Atlantic, don't worry,
your cordless Iridium phone will enable you to still buy 1,000 of Mr. softy
before the close. And, to top it off, your wife is sure to love the
new freedom the phone brings her. Wonder why the stock has dropped
from $60 to $5 in the last year? Doesn't make sense! <BR> <BR>How
many of you RT have one? Two?</FONT></BLOCKQUOTE><BR></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Thu Jul 15 10:54:45 1999
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From: "GatorTrade" <gatortrade@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Subject: FW: Puts and Calls
Date: Thu, 15 Jul 1999 12:13:55 -0500
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<DIV>
<DIV><FONT color=#0000ff face=Tahoma size=2><SPAN class=630312503-15071999>Hi
Dave,</SPAN></FONT></DIV>
<DIV><SPAN class=630312503-15071999></SPAN><FONT color=#0000ff face=Tahoma
size=2> </FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff><FONT face=Tahoma><SPAN
class=630312503-15071999>You can write a covered call if you are long the
equity, and a covered put if you are short the equity. You can do both if
you are long and short (against the box). If you do this, it is the same
risk as just being uncovered on both positions, so <SPAN
class=390171117-15071999>I think it makes more sense to go uncovered on both
positions and save some trading costs.</SPAN></SPAN></FONT></FONT></FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff><FONT face=Tahoma><SPAN
class=630312503-15071999><SPAN
class=390171117-15071999></SPAN></SPAN></FONT></FONT></FONT> </DIV>
<DIV><FONT color=#0000ff face=Tahoma size=2><SPAN class=630312503-15071999>If
I'm slightly bullish on a long position in my account and I wouldn't mind having
more of it at a lower price, I've found it profitable to write an uncovered put
and write a covered call. If the stock goes below my put strike price at
expiration, I get put the stock and write calls on it.</SPAN></FONT></DIV>
<DIV><SPAN class=630312503-15071999></SPAN><FONT color=#0000ff face=Tahoma
size=2> </FONT></DIV>
<DIV><FONT color=#0000ff face=Tahoma size=2><SPAN class=630312503-15071999>Hope
this helps.</SPAN></FONT></DIV>
<DIV><SPAN class=630312503-15071999></SPAN><FONT color=#0000ff face=Tahoma
size=2> </FONT></DIV>
<DIV><FONT color=#0000ff face=Tahoma size=2><SPAN
class=630312503-15071999>Jim</SPAN></FONT></DIV>
<DIV><SPAN class=630312503-15071999></SPAN> </DIV></DIV>
<DIV class=OutlookMessageHeader><FONT face="Times New Roman"
size=2>-----Original Message-----<BR><B>From:</B> owner-realtraders@xxxxxxxxxxxx
[mailto:owner-realtraders@xxxxxxxxxxxx] <B>On Behalf Of</B>
pressdl<BR><B>Sent:</B> Wednesday, July 14, 1999 8:18 PM<BR><B>To:</B>
RealTraders<BR><B>Subject:</B> OPT: Puts and Calls<BR><BR></FONT></DIV>
<DIV><FONT face=Arial size=2>
<DIV><FONT face=Arial size=2>A question relating to options.. Is it ok
to write covered calls and covered puts on the same equity in my
account (Same expiration date --obviously different prices)?? Does
it ever make sense?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Dave</FONT></DIV></FONT></DIV></BODY></HTML>
</x-html>From ???@??? Thu Jul 15 10:54:47 1999
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From: "BrentinUtahsDixie" <brente@xxxxxxxxxxxx>
To: "Real Traders Forum" <realtraders@xxxxxxxxxxxx>
Subject: Gen: Trend and Lunar Phases
Date: Thu, 15 Jul 1999 10:19:58 -0600
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Isn't it interesting how it is better to buy the SP with the trend whether
there is a full or a new moon. Strangely the same thing has worked with
wheat for the duration of the recent contracts only the trend is down.
Novice traders are always looking for a chance to go against the trend for
that big killing. I know I spent enough time trying to do it myself.
Brent
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