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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Rodney Lockhart who wrote (4098)8/24/1997 2:02:00 PM
From: Herm   of 14162
 
Thanks for the correction. I was sort of rushing. You're right about the risk IF things go against you. You do lose more money! That can be a two edge sword. I try to calculate that when CCing in order to past that risk on to my call buyer. I'm betting that I'm a better judge of the stock movement (and in more cases than not, I am). When I knowingly buy the calls first and then exercise (Sneaky Pete) I will always go deep in the money for the calls because of the lower nut and smaller breakeven.
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