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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dan Duchardt who wrote (3659)	4/13/2002 10:16:34 AM
From: fmikehugo	Read Replies (1) of 5205

Dan - Re "your core stock has taken a substantial dip" Not necessarily so. The price of the option can be "so low" just through erosion of time value. Several times I've bought back calls near or on expiry when the stock is, say, a quarter of a point below the strike but still shows a healthy appreciation from my basis. Mike Hugo The full quote was "Many times the buy back price is so low that it is pointless to hold the short call any longer, which, as Allen has noted, means your core stock has taken a substantial dip."

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