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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: jaytee who wrote (13146)8/15/2000 12:18:17 AM
From: Tom K.  Read Replies (1) of 14162
 
Jaytee,

re:collateral power

That's right, I don't risk her GE shares. Actually I do mostly naked PUTs against the collateral because I find it safer. Occasionally I'll buy a stock and do an ITM CALL just to get premiums and be out the next month.

If you're cautious and not greedy, it works quite well. The biggest problem I have is my mother now had to pay income taxes on the gains which was a surprise to her. Now she pays quarterly from the premiums I send. Tell your in-laws to keep some money aside.

Good luck.

Tom
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