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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: alanrs who wrote (5132)4/4/2011 6:52:08 AM
From: ValueGuy  Read Replies (1) of 5205
 
Thanks ARS. Will check the link out.

Just bought myself a book called "Options Trading for the Conservative Investor" by none other than Michael Thomsett...up to page 44 so far but really like what I see...

Basically he advocates 3 main strategies for options:
1) Using long puts to insure long stock positions
2) Covered call writing against long stock positions
3) Options for contingent purchase plans

I especially like how he suggested going long on LEAPS puts and calls + writing a call/put at higher/lower strike price and earlier expiry to hedge risks whilst at the same time earning some income at the same time. Will be trying these out in the coming weeks I reckon.

How did your foray into weekly options work out?
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