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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Uncle Frank who wrote (4842)3/13/2007 3:33:20 PM
From: im a survivor  Read Replies (1) of 5205
 
Could you not sell some puts that basically cancel out the CC's?

Stock goes up, it gets called and you keep profits and premium on stock ( up to strike price) and the CC's, while also collecting premiums on the sold puts in which you are not assigned the stock, since it went up.

Stock goes down and it does not get called and you keep your stock, keep the premiums on the CC, keep the premium on the sold puts and get assigned the stock at a lower price.

Just thinking out loud here, as qcom is not a stock I mind owning. So, if I sell some puts and get assigned more qcom, it is a stock I will happily take more of.......and wouldnt the contradicting trade, pretty much hedge against each other? With worst case being stock drops ALOT and you are forced to buy (be assigned) at a higher strike......
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