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

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To: Herman J. Matos who wrote (1270)3/17/1997 9:58:00 PM
From: Don Lloyd   of 14162
 
Herman, ROST <KEEP IT ALL>
.
I am fully willing to believe that you will, but it will be the
result of your future profitable moves, not the current position.
Unless I am mistaken, your current position has 400 shares, 4 puts
and 4 covered calls at 25. No matter what the stock does from here
you will receive $10000 for 400 shares sold at 25 unless and until
you make another move. You could sell the puts, buy back the calls,
or buy new stock or calls or puts, but until you do one or more of
these your position is locked. (ignoring the different dates). You
cannot sell covered calls again as the next step.

As far as 20% of options being exercised, nearly 100% of options
in the money at expiration are exercised.<g>

Good Luck, Don
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