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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Tom Chwojko-Frank who wrote (417)5/3/2001 4:13:21 PM
From: FaultLine  Read Replies (1) of 5205
 
The seller also ties up the stock until the option is exercised or expired, and so has indirect control of the stock.

Don't you mean the buyer has tied up or leveraged about ten or twenty times his own investment and that the premium is the payment for the privilege using my money for a few weeks?

--fl
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