How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Tom K. who wrote (11523)	9/18/1999 11:15:00 AM
From: NateC	Read Replies (1) of 14162

Tom K..you wrote if you're going to buy the issue, try selling the PUT first. Then you buy the issue at a discount.... what could be better. It makes your current approach nicer. I like this method of buying stocks...but something bothers me, that maybe you could help with. I like stocks with sound FA, and in an uptrend, above their 50, and 20 day MA's. If such a stock is at, say,48...and I sell the 45 October put. If the stock heads downward...hits 45, and I buy it at 45...it is quite possibly in a downtrend at that point....so I might be buying a loser...even tho, as you pointed out, I liked it at 48,and bought it at 45. On the other hand...if it continues it's uptrend, I guess you just keep your put premium would you mind amplifying a bit on this?

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