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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (3523)3/15/2002 2:36:04 PM
From: Victoria Walley   of 5205
 
>>I feel there are 2 types of cc writers, those who buy stocks and sell covered calls as a secondary activity, and those who screen stocks for their attractiveness as cc vehicles. I've had you pegged as one of the former.

No, you're right. I am much more interested in the stock first, then CCs. If the timing & conditions aren't right then I won't sell calls on certain positions. You don't have to be 100% covered all the time. And then there are the times I've entered a buy/write because of juicy premiums and end up stuck with a stock I wouldn't have bought otherwise (ask me about CMRC Jan 04 5 CCs!!).

There are compelling reasons to look at energy stocks right now. And some very nice CC premiums available that might surprise some folks, who only expect to see those kind of % returns from tech stocks.

Vicki
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