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Strategies & Market Trends : Options

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To: Steve 667 who wrote (5725)	3/29/2000 9:09:00 AM
From: Bridge Player	Read Replies (1) of 8096

<< Don't think about it. You don't need to! The market will teach you. Go ahead. Somebody tell me it can't happen. >> Steve, you are so right. The concept of using $100,000 to generate income of $10,000 a month by writing covered calls on high-premium stocks (which, by the simple fact of high premium are high-volatility stocks) is a honey-coated trap for the unwary and naive. I choose that mild description rather than a more accurate but less friendly one. It apparently is an outgrowth of the cult of the V. whose followers are legend on these boards. Your description of a possible scenario is one which should not be taken lightly by those new to options who may be considering such a course. BP

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