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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: wilywilly who wrote (5141)	4/17/2011 10:42:01 AM
From: alanrs	Read Replies (1) of 5205

A little light bulb went off in my head when I read your post. Since I virtually only play well OTM I hadn't thought about using that as a tool if selling ITM options. Makes lots of sense in that context, if it is part of the plan going into a trade. I think one of my objections to the 'rolling over' concept is that it seems too easy to avoid owning up to a bad decision, accepting the consequences, and moving on. I've only really thought of it as a defensive maneuver, kind of a desperate after thought when things go bad, something I try to avoid. What do you look for in selling deep ITM options? I guess what I'm asking is if you use some reliance on the Greeks (and which ones) or if you just rely on experience to notice when a particular option looks favorable relative to its brethren. ARS

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