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

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To: hpeace who wrote (1135)3/16/1997 3:05:00 PM
From: Robert Graham   of 14162
 
You know something Steve, I heard of this strategy about writing naked puts and I was actually thinking of doing this myself. I must be learning somethign here. Just a matter of time I guess.

I think Rodney is right that the stock will dip over the earnings announcement. I think this would encourage the put holder to exersize the option when the stock starts moving back up. What is your take on this?

Whats nice about this is there is limited downside. Even if I do lose some money going into this play by the stock moving to the unlikely price of 19, I can always hold the stock until it appreciates from its bottom. The initial loss would be on paper only since I would hang onto the stock. Make sense?
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