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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: rydad who wrote (3160)12/20/2001 6:21:14 PM
From: Dan Duchardt   of 5205
 
rydad,

Do you really have to tie up the $37,500 for all that time?? Most margin accounts will let you carry the position for a lot less than that, and then you can use the money in other ways until such time as you are required to purchase the stock.

I'm not saying it is a better idea than selling a higher strike, but to make a valid comparison you need to have the right parameters. Once you know what the real cost is to carry the position, then you can compare it to the alternatives.

Dan
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