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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: rydad who wrote (2201)8/23/2001 2:32:49 PM
From: Allen Furlan  Read Replies (1) of 5205
 
Rydad, my comments were about selling naked options in order to generate cash. Only long is a treasury note and proceeds would be premiums on the options and interest on T-note. I hesitated in writing this response but did so because I thought you were contemplating short puts as an income generator. My own preference is about 40% stock,40% T-notes and short covered and uncovered calls in a balanced portfolio. Such a strategy develops less cash and hopefully more stock capital gains. In any case I just wanted to warn you that .03*12 or 36% per year is overly optimistic in my opinion.
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