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

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To: Casaubon who wrote (12157)1/5/2000 11:22:00 PM
From: taxman  Read Replies (2) of 14162
 
no technical analysis. each week in its regular and expanded editions, value line lists 200 stocks to buy and 200 to sell. i select from among the 400 on a random number basis, until i run out of buying power, buying a call if the stock is rated 1 and a put if rated a 5. i usually hold till expiration at which time i sell the in the money puts and either exercise or sell the in the money calls. exercising has thrown my account into a debit balance but i feel i have enough puts if the market keeps dropping.

each option purchase that i make amounts to an outlay of less than one half of one percent of the total value of my account. i generally avoid selling covered calls.

regards
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