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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Stock Farmer who wrote (1129)	6/20/2001 5:17:06 PM
From: FaultLine	Read Replies (1) of 5205

<i.For identical positions, the timing is identical and capital risk is identical too. If one looks at the total position. Don't think so, John. The exit strategy makes all the difference here. The LTB&H will not allow the shares to be called, being willing to suffer a loss in the buy-to-close process. The Buy/Write seller, however, does not mind in the least if the stock is called (and may actually hope for it) and therefore cannot ever suffer any buy-back losses. Naturally, losses due to a stock drop are identical. --dfl

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