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Non-Tech : The Critical Investing Workshop

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To: she_x who wrote (9173)3/25/2000 5:01:00 PM
From: Hunt   of 35685
 
I have a diferent way of dealing with stocks that I don't want to get called away. Since most of the time premium deteriorates during the last week before expiration, I hold off on selling the call until the friday before expiration. Then I take a look at logrithmic<sp> chart and see what the general change in stock price is month to month. I then add that percentage change to the present price of the stock and sell that strike price. Granted, the premium is smaller than that of a cc sold at the money, But I am interested in added cash flow not in the chance that the stock might take off and get called away. This lowers the stress for me by not having to worry about it being called away. In the last two years of cc my old stocks, I have had to repair only once with this technique. I don't want to pay more in taxes than what I would receive for the cc.
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