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Re: [RT] Selling Covered Calls



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> > MikeSuesserott@xxxxxxxxxxx wrote:
> >
> > > 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.
>
> ====================


At QQQ 50 Ben collects +0.75 for the puts. He is out -14.0 plus time premium
for the calls. He needs to "tie up" that capital buying QQQ initially or he
is in a disaster.


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