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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: JGoren who wrote (70)4/19/2001 10:14:26 PM
From: cfoe   of 5205
 
i dont understand the sale of the may 80's

It has taken me a while to understand that the biggest advantage I have when selling cc's is diminishing time. DUF and a couple of others on these threads helped me see that taking smaller premiums more frequently is usually better. so that is why May.

Regarding $80, that is a better than 20% gain from today's closing price. This is on top of the move from the recent low 40s. I'm betting even the Q cannot do it, China, et al.

if it looks like close below 65, why bother buying the apr 65's back

If it is obvious it will close below, I won't. However, if it is hugging 65 going into the last hour, it could go either way. Then I will have a decision to make.
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