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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: LindyBill who wrote (2257)8/27/2001 12:02:35 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> Yeah, but we are timing on CC,s also, Frank

That's only true if we close the position early to capitalize on a sharp dip. We could always let the game play out through expiry. If we've written an otm cc and the underlying stock doesn't surpass the strike price, we keep the premium. If it does surpass the strike price, we keep the premium and get make an additional profit when we get called. It's a win either way.

uf
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