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

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To: Sam2482 who wrote (11985)12/5/1999 5:20:00 PM
From: NateC  Read Replies (1) of 14162
 
You got the main parts Vicki.
you might add to this
Buy the long LEAPS call significantly UNDER value

and look for Covered Calls that are at least near their intrinsic value....that way you can SELL time more rapidly

Also......yes....you do want sold uptrending stocks....HOWEVER.....if you get a downtrender.....try buying back your current covered call.....and selling another one (roll down) several months in a row during a downtrend. You'll be surprised what happens to your long LEAPS call Nut. You can whack away at it pretty soon....and eat away all the intrinsic...and part of the time value...
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