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Technology Stocks : Intel Corporation (INTC)
INTC 41.12-3.5%3:59 PM EST

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To: tcmay who wrote (137484)6/18/2001 5:43:10 AM
From: Amy J  Read Replies (2) of 186894
 
Hi Tim, RE: "Pardon me for being blunt, but these schemes are all part of the fallacy of thinking filters can make money in a mechanistic way."

Regarding "fallacy of thinking filters can make money." Here's a basic way to do it, regardless of the direction of the market:

- establish a strike price that's out of the money around 10 to 15%. If the stock shoots up (worse case when writing cov calls), the gain is 10 to 15% if a person doesn't roll it over. How is that gain a fallacy?

Admittedly, cov calls don't address the issue of the underlying stock, and there is a huge opp cost should the stock rise way higher than the strike, which is why I prefer to do this on no more than a third of the portfolio. A third can move the portfolio in a flat/down market, yet a third won't hurt the gain too much if the stock shoots up since these can be rolled over.

Just a thought...I find it easier to read a post that has RE:. Sometimes I don't see the quotes.

Regards,
Amy J
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