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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 (11342)8/4/1999 2:28:00 PM
From: David Wright  Read Replies (1) of 14162
 
OX,

"sure you get the $'s right away, but you really don't get to keep it until it expires or thru a closing transaction. still everyone does it this way, so in my view, I'm just calculating a more conservative return."

When you write a call, the premium is cash in your account that you can use from the date you do the trade. That is why they include it in the ROI calculation. How you eventually wind up on the CC combination awaits either expiration, or closing by you prior to expiration.

Dave
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