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

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To: Herm who wrote (4258)8/31/1997 3:19:00 PM
From: Vol   of 14162
 
Herm,
I thought I remember you saying one time that you hardly ever buy puts on your stocks. Correct me if I'm wrong. If this is so, have you ever been burned with a 20% or more drop? It seems like companies with such huge expectations like VVUS, which I am cc'ing, could drop like a rock if there is even a hint of a snag in their business.

On the other hand, if someone like Sly Stalone came on TV and claimed that a Vivus product has jump started his sex life, the stock could go through the roof. If you get called out and you've bought no calls, what do you do then? Wait for the price to come down to earth before you buy it again? Or then is it off to another stock? (Like the Hair Club for Men, which I bet Sly has also benefited from.) ; )

-Vol
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