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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (551)5/12/2001 9:07:23 PM
From: JohnM  Read Replies (1) of 5205
 
I think you are right about this so I'd suggest you try the simple buy/write approach for a couple of months. Option-wise it's foolproof. Of course the underlying stock may go down -- but what else is new?<lol>

Exactly my plans. But I'm a terrible skeptic. Got to see for myself. So that's the proposition I need to check out, including a comparison with doing it on shares I don't want to lose. If I understand the argument, that should not bother me. I need to do the math on that in comparison with the math on your buy/write stategy.

I'll get it done but I've got a bit more serious morphing into retirement to do. Off to the Jersey shore in the middle of the week with my wife.

One of the interesting things about options is that I'm finding it harder to get into the logic than I found working with Geoff Moore's Gorilla book. The logic of Moore's argument fits my sociological background; in fact, his technology life cycle arguments draw from the discipline. But option trading, that's more like my first three attempts to learn fortran programming. New language, new logics. Just need to concentrate.

John
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