How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: Douglas Webb who wrote (4320)	9/2/1997 12:07:00 PM
From: Herm	of 14162

On the UGLY you may still see a trader's bounce today as the PUTs are cashed in. The damage already occured last week as the stock dropped of sharply. There is more upside potential than downside. Damage Control: 1. I would write CCs on INVN two months out to raise cash if you have not done so. You know your net cost basis so stay at least at the money for the strike price. That way you will not give up your gains and you can avoid that margin call. 2. CCing on Ugly must be over your net cost basis even if it means going out to the Dec. CCs since you are so close to your net cost basis. There has to be a rebound coming soon! The one time charge back is not enough to send the stock tumbling down to the 200-day average.

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