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Strategies & Market Trends : Option Spreads, Credit my Debit
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To: Tim O. who wrote (1399)4/28/2000 12:30:00 AM
From: KFE  Read Replies (1) of 2317
 
Tim,

if you were to do the positions today, given the % returns you computed, why wouldn't you just write 2 puts instead of the 1 long stock/short straddle?

If starting from scratch I would but at the time I already had an existing long position.

seems like the covered call portion is just lowering the returns.

Exactly, that was the point I was trying to make. Many people enamored with covered call writing don't realize that greater returns can be generated with equivalent or similar strategies.

Regards,

Ken
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