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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Stock Farmer who wrote (1129)	6/20/2001 5:16:11 PM
From: Uncle Frank	Read Replies (1) of 5205

>> Isn't the difference merely the psychology? I don't think so; I see the objects as very different. The buy-write or put writer need not have a particular vision about the stock underlying their trades. They tend to rely on ta and chart reading as their decision making tools. They are generally adverse to long term stock ownership. Their objective is to capture premiums. Lltb&h cc writers aim for long term equity participation in issues that they feel have a competitive advantage based on fundamentals. Their objective is to own the stock in the expectation that the enterprise will flourish, and premiums gianed from cc's are just gravy. It's basically the difference between traders and investors. Both want to make money, but their approaches differ in technique, objective, and psychology. jmho, duf

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