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Strategies & Market Trends : Short-termSelling Puts (Covered Calls by another name)

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From: tuck2/4/2006 1:44:38 AM
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One strategy I've recently adopted is taking advantage of volatility by selling it well in advance of major/binary events (when the date is known with some degree of certainty) -- and bailing before the actual event. An example of a put selling/covered call play incorporating this strategy would be AGIX, which is probably still good for a few months before any data actually comes out of the very binary ARISE trials.

I like MNTA because the premiums are so high that it's hard to lose in the long run, and I've made some good coin on that for a few months.

My time frames are shorter than Rocky's; I rarely go out farther than a couple of months, and simply roll them around, up/down as needed. Both time frames have their merits, and the returns are probably roughly even, though my shorter time frame probably demands more attention. So maybe I should rethink that.

Cheers, Tuck
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