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PureBytes Links
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Here is a good site for these Leap Spreads <A
href="http://www.coveredcallswins.com/";>http://www.coveredcallswins.com/
I have no association with them but did follow
Herms SI thread for a while.
Steve
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Tuesday, February 19, 2002 11:02
AM
Subject: Re: [RT] Selling Covered
Calls
In my fidelity IRA accountthey first only
allowed me to sell covered calls,,and when I complained that what
happens if the stock goes down more thanprimume collected,, they
FINALLY(with a big fight) allow me to buy putsYesin my
private account (not ira)I just buy leapsand sell monthly calls
against themthat by the way I learn to do from
calaxcorp@xxxxxxxa cpa who have been creating income for
yearsBen----- Original Message -----From:
<MikeSuesserott@xxxxxxxxxxx>To:
<realtraders@xxxxxxxxxxxxxxx>Sent: Tuesday, February 19, 2002 10:31
AMSubject: [RT] Selling Covered Calls> Ben,>>
your position is equivalent to a calendar spread> buy 20 March 34
Puts> sell 20 April 36 calls>> You'd get the same
risk/reward characteristics without having to tie up> capital in the
purchase of the QQQ stock.>> Regards,>> Michael
Suesserott>>> > -----Ursprungliche
Nachricht-----> > Von: profitok
[mailto:profitok@xxxxxxxxxxxxx]> > Gesendet: Tuesday, February 19,
2002 16:25> > An: realtraders@xxxxxxxxxxxxxxx> > Betreff:
Re: Re[2]: [RT] Selling Covered Calls> >> >> >
maybe an example will make everyone happy> >> > buy
2000 qqq at 35> > sell 20 April
36 calls at 2.4> > buy 20 march 34 at .75>
> ----- Original Message -----> > From: "TheQuant"
<thequant@xxxxxxxxx>> > To: "Daniel Goncharoff"
<realtraders@xxxxxxxxxxxxxxx>> > Sent: Monday, February 18,
2002 8:53 PM> > Subject: Re[2]: [RT] Selling Covered Calls>
>> >> > > Hello Daniel,> > >>
> > Tuesday, February 19, 2002, 5:38:35 AM, you wrote:> >
>> > > DG> When was selling covered calls (which is indeed
similar to selling> > > DG> puts) discussed?> >
>> > > I went back and re-read his post you are correct.
However I have> > > trouble understanding the method. He
sells calls, then understands> > > the risk so he sells tons of
puts. Did he also have tons of calls or> > > a half a ton
of calls. I think he has been lucky for 7 months?> > >
What's the exact method or is it seat of the pants? Besides that
Ric> > > brings up some very interesting points about the whole
thing and read> > > Tom Bowen's most recent post.
Especially the part about the audited> > > (independently)track
record. If I only had a nickle for every bright> > > star
that has claimed to have made "Tons of Money" trading.> >
>> > > DG> I thought Ben was talking about a strategy that
was more like a> > > DG> collar, if I understood it correctly.
It seems to me that Ben's> > > DG> strategy is based on
differences between real price movements and> > > DG> the
pricing of options, which is usually done on the basis of> > >
DG> probabilistic models. Whether you believe it works or not, his>
> > DG> downside is limited, which makes it look a lot different than
a> > > DG> naked short put -- more like a bull put
spread.> > >> > > Bunk his downside is limited!, the
way the post reads he had more puts> > > bought "Tons" then
calls. Either way he could have lost on the trade,> > > contrary
his broker is smiling.> > >> > > DG>
Regards> > > DG> DanG> > >> > > What
Ric writes below is an eye opener! He is absolutely correct!>
> > People can get crazy I tell you trying to avoid risk but
rather> > > causing self fulfilled prophecy of doom upon
themselves!> > >> > > DG> ric ingram
wrote:> > > >>> > > >> Hi,> >
> >>> > > >> But some people have a real
perception problem - and do not knowit.> > > >>>
> > >> It is only reasonable to point out that given that you
intend tohold> > the> > > >> underlying,
selling a covered call actually reduces your> > exposure to
a> > big> > > >> fall. So if you were
going to hold the underlying anyway, selling> > covered> >
> >> calls can be considered a conservative strategy.> >
> >>> > > >> However if you do not hold the
underlying or do hold it but do not> > intend> > >
>> to keep it, buying the underlying and selling a covered call is
the> > same as> > > >> selling a naked
put.> > > >>> > > >> Paradoxically,
selling naked puts is actually lower risk thanholding> >
the> > > >> underlying if you allocate the same capital as
you would> > have done for> > > >> holding the
underlying.> > > >>> > > >> But
rationality is rarely a bedfellow with fear or greed.> > >
>>> > > >> Unconditionally yours, Ric.> >
> >> www.traderscalm.com> > >> > >>
> > --> > > Best regards,> > >
TheQuant
mailto:thequant@xxxxxxxxx> > >> > >> >
>> > > To unsubscribe from this group, send an email
to:> > > realtraders-unsubscribe@xxxxxxxxxxxxxxx> >
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