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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 170.14+1.2%2:31 PM EST
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To: PAL who wrote (49852)11/14/1999 1:51:00 PM
From: MileHigh  Read Replies (1) of 152472
 
PAL,

The basic principle of selling call is that one's outlook for the stock is neutral to bearish

In theory, this is wrong. Selling calls is a somewhat bullish outlook on the stock. When using the Total Return Concept, you want the stock to rise into your sold OTM calls. Thus you capture the premium and participate in a small rise in the stock price.

If one is bearish on a stock, SELL IT! CC's will never provide enough insurance for an impending downturn.

Regards,

MileHigh
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