| my experience: I thought stox were stupid as well! Now I don't . leaps are great if you make sure your leaps are heavily traded -- i.e. small spread. I have seen my leaps change by less than they should because of thin trading. And if the trading is thin, the trader will force you to go to the bid or ask by using your bid as the new bid. Dr Joe's plan works well, because SPY is heavy trade and the bid ask is small. Consider MEE -- in the area you want to own, the spread is near $1 or 5%. So, if you are willing to concentrate on a few indices or really heavily traded stox, good plan. Otherwise, buyer beware other issue, in many cases, brokers holding IRA /401k will not let you do calender spreads. Covered calls are level 1, calender spreads are (I think) level 3. |
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