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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: holland who wrote (3311)1/22/2002 12:39:32 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> But in a time spread which is what you have when you sell a short term call against a leap you are looking for decay in the time value and do not want to be called.

I don't see where this differs from the objective when writing covered calls. In a CC of the buy-write variety, which is the best comparison to a calendar spread, I'd see surrendering the stock, as opposed to buying back the call, as the superior play in a flat or declining market. Why should that be any different for a calendar spread?

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