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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Mathemagician who wrote (439)5/8/2001 12:50:36 PM
From: TimF   of 5205
 
The difference is that writing puts requires much less capital up front and so you dramatically increase your ROI with an equivalent risk/reward profile. Sometimes it makes me wonder why we bother selling CCs at all.

Some people sell covered holds on what they hope will be a long term position. They all ready own the shares they are not doing a buy write, they just want to get a little extra income.

Also selling a put requires a higher level of options priviliges then selling covered calls.

Tim
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