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

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To: jim clabaugh who wrote (5113)10/1/1997 7:28:00 AM
From: Herm   of 14162
 
OK Jim, If you own that many stocks you know you should be working on your defensive CCing. For the readers, when the price drops alot you cover you CCs when you can get 50%-80% of the original premie locked up. If the stock continues to drop immediately go out two months and down one strike price on your next round of CCs. That will bring in a larger premie to help you keep up with the drop in the stock value. Use your technical chart indicators like Bollinger Bands and Relative Strength Indicator (RSI) as your barometer of the price movements. Technically Jim! You should be staying even in portfolio value by using the CC option toolbox.
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