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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: cfoe who wrote (1546)	7/20/2001 9:39:44 AM
From: JGoren	Read Replies (2) of 5205

Thanks, cfoe. I didn't intend to write August calls until after the CC, anyway. What I was concerned about is that it will be difficult to predict the combinded stock price and that there is a greater risk of exercise. I write calls well OTM, but there is still a risk if, for example, spinco runs up. Additionally, what do the funds, particularly the index funds, do? Has anyone run numbers to see if there is a change in the weighting? Could be, they will be overloaded in spinco? Or is it automatic, the spunoff shares automatically are the right percentage of the overall portfolio. I guess it's basic algebra, but I am a lousy mathematican. Is there a better mathematician out there than I (not saying much) that can clarify?

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