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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: LindyBill who wrote (1662)	7/29/2001 4:11:30 PM
From: alanrs	of 5205

Should I should write them ITM, or just OTM? I believe that most people who do not mind their underlying stock being called away would write leading month calls just OTM. I believe this captures the most time premium decay, as a general rule. There have been cases that I have found for stocks that I own where the next month out has actually offered a larger per day time premium, so I would advise checking this, but mostly this is not the case, and I have no idea why this occurs at all. Market inefficiency? I'm sure you will get a lot of good advice about that strategy since many/most of the posters here do exactly that-and probably own many of the same stocks as you. ARS

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