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Non-Tech : The Critical Investing Workshop

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To: RocketMan who wrote (29327)8/17/2000 6:20:40 PM
From: im a survivor  Read Replies (1) of 35685
 
<<What is the rule of thumb on how far OTM to sell the calls?>>

No rules.....it's based on your own individual strategy. If you wish to hold the stock, more then likely you sell then more otm, that way you take less in premium, but are more liley to retain the stock. The flipside, IF you are called, you are getting a higher price for the stock. When writing for income only, I would imagine you want to buy and write immediately at or a tad above your buy price. After all, the object is getting a higher premium and hopefully having the stock called.

keith@wonderinghowandwhyIamgivingadviceonwritingoptions.com
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