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

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To: Michael Hart who wrote (7682)6/18/1998 9:35:00 PM
From: Tom K.   of 14162
 
<<... could someone give their opinion/experience on using puts as an entry strategy to own a stock prior to CC'ing. >>

Mike, I use this strategy and it works well. I feel that you must be prepared to buy if the stock tanks.... an alternative is to buy a protective PUT further OTM.

Of the three PUT positions I have this month, one was closed early to lock in the profit, another will expire tomorrow at a profit, the third will be exercised tomorrow and I will come back with CALLs on it for next month.

Hope that helps. Feel free to ask questions... I'm not an expert, but I've got a bit of OJT.

Tom
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