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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Dnorman who wrote (7641)6/14/1998 9:44:00 PM
From: Tom K.   of 14162
 
Dennis, my suggestion would be to first define your strategy for using options. I mean do you plan to

1. trade the options themselves for movement in their value? or
2. trade the stock and use the options as protection vehicles? or
3. trade the stock and sell options for price reduction, or
4. be an options seller and take on risk and keep the premiums, or

etc., etc., etc....

The point is that without a clear game plan, your paper trading will be difficult to assess. However, on the positive side, it would be financially horrible if you throw cash into the process without a clear game plan. People do lose money in this process. Decide how you want to use options to do whatever it is you are thinking, then set up a model portfolio to track and modify your strategy.

Good luck.

Tom
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