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

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To: CENTrader who wrote (148)2/15/1997 11:23:00 AM
From: Herman J. Matos   of 14162
 
The best part Bill is if you know it's coming you can position yourself to MAKE A KILLING ON THE WAY DOWN. YOU WILL MAKE MORE MONEY ON A FREE FALL DOWN MARKET within a small time span than an up market anyday!

Remember, watch the time and prices and determine on which side of the equation you will benefit from. I did not make up the rules of the game.

THE NAME OF THE GAME!

If you did not have investor/speculators in the markets, you would not have anybody to buy those stocks, puts and calls and you would witness our free world economy vanish into a oneway abyss!

Just like a blackjack game! You are the dealer, and you have to let some of your players (call buyers) win something off of you in order to keep them coming back for more ACTION! On the other hand, you as the dealer (covered call writer) can't forget fo remove YOUR CHIPS after a hand (call writing play) off the table. Otherwise, someone might be tempted to grab some of those chips because they envy your nice winnings.

Without the dealer (covered call writer) willing to start a game (offer the call option BUY OPPORTUNITY) you won't fill up the casinos (the stock market) and in turn the casino would not be able to employ the workers (the companies and industries) from the proceeds from the profits (your investment in their stock). You you see, you are a true American helping your country remain strong and helping to feed all those families and yours.
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