~TA FAnaTick$~

[~6979~]

How I trade Covered LEAPS

~NVDA~ credit management Part 1
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63137774

~NVDA~ credit management Part 2
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63161739
sold the 21 (june calls) @ .88 & bought back today @.15(bestPP) =+$730

@ that time my 17.5 LEAP's were @ 2.89...(down over 1k)...Im going to hold those directional for now in anticipation of a bounce...(already @ 3.00x3.05)

...will re-estab short side post bounce (better premiums)
this all = turning a loser into a winner

~NVDA~ credit management part 3 (Summation)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63171163
There are many ways to view this...This is how I look @ it...

I originally bought the ~NVDA~ Jan 17.50's for (link back)
so my basis is 4.35 = $4,350.00

I then sold the June 21's for .88 = $880.00
I bought back today @ .15 = $150.00 = profit of $730.00

So I basically reduced my Basis (& it looks like this)
4.35 - .73 = 3.58
So my new basis is now 3.58 or $3,580.00

I then waited for a bounce...got it...re-established a new short
(~NVDA~ Jun 19 calls @ .60 = $600.00)

So in effect my new basis is 3.58 - .60 = 2.98 (I might not get the whole .60, but you can see what I am doing...Eventually, my long LEAP position will pay for itself...

Hope this helps some see what this method is about...(this is just my view & how I learned)



Knowledge = 1T/A69888