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

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To: Mark who wrote (4217)8/29/1997 4:45:00 PM
From: hpeace   of 14162
 
MArk, you didn't buy the upstrike calls that you could have gotten cheap on amd.. those would have saved you..
of course, remember, donn't repair quickly...look what happened.
all those who didn't buy the upstrike calls got to buy their amd 37.5 calls back at a profit.. it's falllen back.
But, you bring up a good point.
1. buy the cheap upstrike calls

2. don't sell your 37.5 calls too soon

3. don't repair too quickly, those amd calls fell bac
It's where knowing your stk is important and being patient enough to
stick with the strategy.

I don't see any run aways in amd's profile unitl october, but it could also crash.
so get those cheap puts.
Here's my taek on it..when you buy the cheap upstrike call or cheap puts it should LOOK LIKE YOU ARE THROWING YOUR MONEY AWAY.
then the next thing you know you have profit.
This isn't easy...but the upstrike call would have made yo money and buying the 37.5 or 35 puts on amd when the stk was 42.5 would have made money too.
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