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

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To: Willsgarden who wrote (1703)4/16/1997 11:02:00 AM
From: David Walton   of 14162
 
Bill, About Naked Puts

If you are realy bullish on a stock and you REALLY, REALLY don't mind owning the stock at the strike price, then and only then is writing naked puts advised. The fact that you like the stock is your trumph card as you say. The risk is that if something unforseen happens and the stock really goes down in price say 25% to 50% then you will have to LOVE the stock because when its put to you you'll be paying $20 for a stock that is currently trading at $14 (just an example). Not trying to scare you, but if you like that much writing naked puts is great way to go.

David
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