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

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To: Don Lloyd who wrote (1515)3/27/1997 3:52:00 PM
From: J. P.   of 14162
 
<Missing part of the runnup of a stock is no worse than not owning shares in any random stock that runs up on a given day.

Don,

Good way of looking at it. If MRVC were to be called out at 22.5, the gain would be 18% (in a month) and that is more than acceptable! In fact this was my thought process when the call was written. And if it DOESN'T run up, then I keep the premium.

The technique is good, it's ME that needs the fine tuning!

Thanks

Jim

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