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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (4562)11/15/2006 1:26:04 PM
From: Carl Worth  Read Replies (1) of 5205
 
one idea is to buy a january 37.50 put since it is almost all time value, and won't change by much tomorrow unless the stock makes a big gap, but you have the downside protection in case the stock implodes for some reason

buy the put just before the close so it costs you the least relative to the current stock price, and then you can look at things tomorrow and adjust your positions accordingly
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