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Strategies & Market Trends : CFZ E-Wiggle Workspace

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To: Galirayo who wrote (9722)12/26/2008 5:40:26 PM
From: skinowski1 Recommendation  Read Replies (2) of 41600
 
I love it... you want to buy something - sell puts. You think the stock or an index or whatever is hitting support - sell puts. You want to sell a covered call? - sell a put and don't bother buying the underlying (and then selling the call). A short put has the same exact risk / reward profile as a covered call.

There are many fun strategies. If you're long a dividend payer that sits in a range but you're worried about a drop - sell a call and use the proceeds to buy a (protective) put. This will limit your capital appreciation, but you're safe on the downside, which is not a bad thing in a bear market. Sit around and collect divvies. Especially now, with VIX still relatively high, options games are fun. But gotto be careful and patient.
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