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

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To: John E. Deitering who wrote (11739)10/24/1999 9:35:00 PM
From: Tom K.   of 14162
 
John, if you are really interested in "options," try selling OTM PUTs. Start with only a few contracts and only go out 30-60 days. Pick a quality issue.. suggest MSFT for a start. Once you get the feel and a taste for profits, albeit small ones, you'll be able to expand on the # of contracts you sell. If the issue gets put to you, turn around and sell CALLs.

Starting rules:

1. don't be greedy (give plenty of cushion)
2. have funds to take the issue if PUT to you
3. only use quality stocks

Follow these few steps and you'll start to make money with options..... at the same time, learn all you can about the process.

Good luck.

Tom
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