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

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To: David Walton who wrote (1711)4/16/1997 12:00:00 PM
From: hpeace   of 14162
 
david, if it is a solid compnay then you can repair buy buying back the put and selling the put at lower strike.
This si recco'ed for a solid compnay.
If something is changed it is recco'ed to just buy it back and close.
But, if you really want to own the stk then roll down.
Of course many will sell a 37.5 put for 3 and buy the 30 put for a 1/4. this locks in porfit reduces margin and reduces the gap open risk.

But, I think the key now is to select stks that have already fallen 40% and are great companies.
The dow and nasdaq don't refect the market in general
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