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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (3967)7/18/1999 12:15:00 PM
From: snoozlooze  Read Replies (2) of 54805
 
... may sell a series of 3 covered calls on the core holdings...

Unc,

Am a long time lurker,
have read THE BOOK,
core holdings fit the profile...

A question concerning the covered calls if I may. I have considered this strategy on "lesser" holdings but have always been told that
the only(?) downside to CC's is the loss of "potential earnings" as the underlying increases in value.

If we were to employ CC's as a Y2K insurance on our Gorilla holdings,
what is the safest strategy? I would hate to lose the underlying securities.

Thanks in advance

Snooz

P.S. One of my employees, a very intelligent female who uses a computer daily, is considering buying a new computer at home. She told me that she was waiting to buy until after Jan 1, because of the Y2K! I think there is definitely going to be an over-reaction by the general public!
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