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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Seeker of Truth who wrote (880)6/1/2001 8:48:15 AM
From: i-node  Read Replies (2) of 5205
 
I found myself nodding in agreement with your point

Not to butt in, but I don't see a need for the stock to be overpriced or nearly so -- I believe ccs offer a safer way to speculate on the random price movements that occur on any given day -- just as the buyer of the call can. The difference is the cc writer has time on his side, where the buyer has time working against him.

Right now, I own AMD which I don't consider to be overpriced or anywhere near it. When it has moved up a couple dollars, I'll sell calls on it with the understanding that in all likelihood the stock is going to move down again before it moves up and I'll have an opportunity to cover.
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