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

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To: hpeace who wrote (872)3/13/1997 11:25:00 PM
From: Robert Graham   of 14162
 
No. I do not beleive in cash positions unless I am in the process of moving my money to another investment. I am very interested in this covered option writing strategy, even though I plan on making a different use of it.

Here is my plan. Feel free to constructively comment. I am very interested in hearing from you.

I can invest in a stock for an intermediate term gain of about a few months. When the stock has appreciated a significant amount to what I consider a fair value, I then want to start writing covered options on it until I get called out of the stock. I believe this approach has the lowest risk because of the buffer I have between the pruchase price and the current price of the stock.

What covered call writing strategy would you recommend for this use of covered call writing?
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