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

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To: R. Gordon who wrote (4335)9/2/1997 10:01:00 PM
From: Herm   of 14162
 
Hi Richard, I also find the entry the most difficult part of CCing. I've had 100% batting average buying the options first and then picking up the stock later and start CCing in the black. So, I'm obviously real bias in the approach. I generally have a good feel for the upward momemtum and I take the chance and commit myself. Today, I picked up 10 CREAF Oct. 20s @ 2 which was about in the middle of today's range. I'm happy with that! My money is usually tied up in another two positions. So, picking up the calls first is more of a timing trick to take advantage of good probabilities. My chart reading is critical to my decision making. It takes a great deal of the quess work out of knowing when to buy and when to sell.
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