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Strategies & Market Trends : Options

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To: KFE who wrote (1399)1/20/2000 3:53:00 PM
From: Bridge Player  Read Replies (1) of 8096
 
<< The only reasons that I can see why someone would do covered calls instead of naked puts would be >>

Ken, my wife does a lot of naked put writing. And then, on those occasions when she is put the stock, she does the other side and writes covered calls.

This has been a fairly successful, relatively conservative strategy for some time now. The major risk as I see it is a significant downturn in the market, in which the stocks put are so far below the assigned price that any call premiums at that price or higher are hardly worth it.

Sharp sell-offs have been buying opportunities for many, many years now. IMO that will not continue to be the case for too much longer.

BP
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