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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: OX who wrote (11337)8/3/1999 7:08:00 PM
From: NateC   of 14162
 


Pardon the intrusion, this is really fascinating following everyone deciphering this
possible CPQ spread play...

> the MM who bought the 45's sold the 40s to lay off part of his risk

It may be a little late in the day for me, but I wondering, if a specialist did do this to
offset her position... who does she sell the 40's to? another specialist? In a case like this,
if it wasn't a spread play, I would think the specialist would cover with shares. But I
have no idea what I'm talking about, so I would love for someone to correct what I'm
trying to say.

also relevant to the CC thread, perhaps...


If a MM bought the 45's..........and wanted to offset these by sell the 40's.....he/she needs to have a buyer. Someone needs to want all the options. That's why I made the comment about information being important. Besides a MM can lose a lot of money this way, when forced to cover.
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