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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (4581)11/19/2006 8:22:13 PM
From: Al Greenleaf  Read Replies (1) of 5205
 
>>This thread has promotes writing calls against core holdings as a means of generating income. If your plan is to remain invested in a stock, any covered call premiums generated by them are pure gravy.<<

Thanks for the response! I think the concept that I missed was the one of "core holdings". I can see how selling calls would help a lot if you plan to hold a stock regardless of it's ups and downs. I hope you don't mind if I ask one more question. Under what circumstances would you sell a core holding? I am trying to figure out when it is best to buy and hold and when it is best to bail when the trend line is broken. I know a lot of people seem to do well with covered calls, and I am trying to figure it out. All help is appreciated.
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