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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: FaultLine who wrote (1133)	6/20/2001 6:32:55 PM
From: Stock Farmer	Read Replies (1) of 5205

FL - you are not talking about identical positions. You have neglected to consider that the put writer who absolutely must emerge from the cycle holding the shares could take an identical loss to roll into the money, no? Or merely pick up the shares in the open market. Only in this case the folly is evident. What seems to get even the smartest dummies all mixed up is this business that one must own the shares all the way through. Remove that arbitrary requirement and say: I need to end up at an equivalent position several years from now... and presto... the mist clears. Treat $20 shares in XYZ like $20 bills for a second. Do you care which one ends up in your wallet? Should you? One $20 bill is the same as any other. John

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