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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: FaultLine who wrote (465)5/7/2001 7:55:31 PM
From: Mike Buckley  Read Replies (2) of 5205
 
Another good reason to have some freedom-of-action-cash around.

That being the case, tying up the cash should be factored into the equation that determines the returns one gains when writing CCs. I don't remember seeing anyone accounting for the cash earning money market rates that could instead be deployed in other investments. Of course, considering what happened in the last fifteen months, perhaps the best reason to write covered calles was because it forced the prudent CC writer to keep a certain amount of cash under the mattress.

--Mike Buckley
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