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Tag Archives: Diagonal Spread
covered call writing strategies

Poor Man’s Covered Call: Practical Application

Covered call writing involves first buying a stock or exchange-traded fund (ETF) and then selling call options on those shares. Each contract we sell requires us to buy 100 shares of […]

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Option expirations and theta

Mechanics of LEAPS

LEAPS are long-term options that have expiration dates between nine months and two and a half years out. The term is an acronym for Long Term Equity AnticiPation Securities. Once […]

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LEAPS and Covered Call Writing: A Review and a Hypothetical Example/ Contest Application

A covered call writing-like strategy involves buying deep in-the-money LEAPS options and then selling short-term slightly out-of-the-money call options. Leaps become a stock surrogate. The term Leaps stands for Long […]

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