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

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To: Robert Graham who wrote (879)3/13/1997 11:42:00 PM
From: hpeace   of 14162
 
robt, that is actually one of my plays. i would say that if you really do go to cash then you must find something else. i watch stocks for months to 2 yrs before I select it.
i research it to the hilt.
so, if I find it then if the stk is 32.5. I might sell a naked call
on the stk for 1.5 or 1 at a strike of 30 for that month.
what that says is I haveto buy the stk at 30 if it gets there that month. if it doesn't then i keep the money ($1 per share).
If you want to buy say 100,000 worth. that is selling 30 naked puts.
so , they pay me to buy the stk at 30.

another option is buy 1500 shares. then sell the naked put on only 15 contracts.
I'll leave out the tricky stuff after this.
think about it.
you used this strategy to exit. use it to enter also,
Robt,,,,, this is alot better of a subject than the risk thing that is covered in spades by heramn and I.
Herman and I have bailed out so many poeple in this option game that I'm posiitve that my 1-5 may be correct.

Low inflation will help friday
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