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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Getch who wrote (207)4/24/2001 3:23:03 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> the key to return is when do you receive/spend the money.

I've come to that conclusion too.

If I were in the buy/write business, your arguments might be more appealing, but I am writing calls again long term core positions. What's meaningful to me is how much return I generate during the period bounded by the initiation and the termination of the contract, whether that be through buy-to-close or expiration. In such calculations think it reasonable to use the price of the underlying at the time of the sale as my "cost basis".

duf
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