How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Herman J. Matos who wrote ()	12/20/1999 10:38:00 AM
From: john lilly	Read Replies (2) of 14162

Herm, from this board and McMillan I've learned about using puts as a protective measure after writing CCs. The idea of using the call buyer's money to buy the put and thereby protect against large downward drops is fantastic. My question is: do you buy the puts on a case-by-case basis or do you use firm rules such as: "I always buy puts that cost less than X% of the premium I got for the CC." or "I never buy puts that will cost me more than X% of the premium I got for the CC." Thanks for all your insight.

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