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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (1694)7/31/2001 11:46:47 AM
From: Alias Shrugged  Read Replies (2) of 5205
 
UF

<<When writing the max time call, aren't you concerned about getting "trapped" into a synthetic long term position by a down market?>>

When establishing ANY position, I am concerned about losing money.

I am usually looking for buy/writes in "down markets" or, really, down and out sectors.

Writing the maximum time premium will not trap me in a synthetic long term position - I can always unwind the position. I basically have the same options/decisions that someone writing shorter dated calls has, except I have more premium - a larger cushion.

Mike
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