Comments on: Call Writers: Trade Those Calls http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/ Thu, 09 Sep 2010 01:28:40 +0000 http://wordpress.org/?v=2.1 By: Jay http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-145 Jay Sun, 21 Oct 2007 20:20:24 +0000 http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-145 John would it not be better to buy a call 4 to 6 mo. back with delta of about 80 to 85 and sell front month calls ITM or ATM to achive the same results (income from stock covered calls) without laying out lot of cash to buy the stock and then write ? "At risk" capital will be a lot less than when a stock is purchased. I am confussed, I don't see why I need to buy "stock" to cover 'write'. Your experienced thoughts please. Thanks jay John would it not be better to buy a call 4 to 6 mo. back with delta of about 80 to 85 and sell front month calls ITM or ATM to achive the same results (income from stock covered calls) without laying out lot of cash to buy the stock and then write ? “At risk” capital will be a lot less than when a stock is purchased. I am confussed, I don’t see why I need to buy “stock” to cover ‘write’. Your experienced thoughts please. Thanks
jay

]]> By: John Brasher http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-146 John Brasher Sun, 21 Oct 2007 22:54:18 +0000 http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-146 Jay, when you buy the long-term call instead of the stock, it does not create a covered call but a calendar call spread. It is indeed cheaper than buying the stock, but a spread is a different trade and has its own risks. The long-term calls will expire sooner or later - which stock does not do. I have a article or two in the free Money Newsletter archives on the subject of LEAPS-covered calls which might be of interest. Jay, when you buy the long-term call instead of the stock, it does not create a covered call but a calendar call spread. It is indeed cheaper than buying the stock, but a spread is a different trade and has its own risks. The long-term calls will expire sooner or later - which stock does not do. I have a article or two in the free Money Newsletter archives on the subject of LEAPS-covered calls which might be of interest.

]]> By: Click http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-200 Click Mon, 07 Jul 2008 15:41:19 +0000 http://www.callwriter.com/blog/2007/04/18/call-writers-trade-those-calls/#comment-200 <strong>Click...</strong> Love that info. After reading your blog I now understand "buying stock online". Thank For the great post!... Click…

Love that info. After reading your blog I now understand “buying stock online”. Thank For the great post!…

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