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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 (11564)9/21/1999 8:30:00 PM
From: Herm  Read Replies (1) of 14162
 
Factor in that you already are long with more existing shares with a much lower net cost basis (nut) by capital appreciation and CCing and you could still have some PUT to you and it would average down some more to soften the bite.

Of course, the next round of CCs would yield even more income from the new shares acquired. Too bad, it would not work in most IRA's.

Do you limit the amount of PUTs you write to a certain number of contracts or by some percentage of dollar value?

Thanks Tom!
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