The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments


Subject:  Re: Future balloon payment Date:  6/8/2004  8:33 PM
Author:  Loren10 Number:  10257 of 36384

GREYFOX: Thank you for your reply. This is interesting and I've wanted to do some covered call writing with my other investment funds. I followed most of what you said, but a few buzz words through me off a little. Can you give me a few more details on these items:

What are "leaps"? (Writing calls with a strike price higher than the current price?)

What do you mean by "one or two notches" above the current price?

What is "trading around the position"?

Also, I would immagine that your covered stocks get called away fairly frequently. Generally, is the majority of your capital gain short term or long term - for tax purposes?


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us