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

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To: Herm who wrote (12792)5/25/2000 2:55:00 PM
From: Richard James  Read Replies (1) of 14162
 
Don't quite get the point in a mm going short against the box, since loss on the long position drops point for point as the value of the short increases. Is it that the mm is hedged from any movement, until he covers his short at the bottom, when a short squeeze hopefully drives up the volume of the long position. The mm also might buy some additional long at the bottom, increasing that long position and further squeezing the shorts.

BTW, checked in here 2 months ago about ccs. You gave me a few pointers. Not getting rich but covered my loss and making a small profit in this turbulent market. Thanks, Herm.
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