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Strategies & Market Trends : Calls and Puts for Income
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To: dealmakr who wrote (4913)6/12/2011 2:46:54 PM
From: tyc:>  Read Replies (1) of 5891
 
A down market can be very confusing to me. Say;

I was making money selling covered calls on SPY when the stock was rising. One-month o/m calls

Currently I am short SPY, subject to a buy-on-stop to protect against trend change.

I see no reason not to continue selling calls for income, just as I did when I was long.

And perhaps the same principle applies to any stock position, long or short. Can one not sell calls for income, whether long or short the stock? Downside protection is afforded by a stop loss on the stock, long or short, but the sale of calls for income need not be interrupted provided the buy-on-stop quantity is adjusted.

I sure would appreciate your comment, especially if I am mistaken. I acknowledge this was contemplated in an earlier post. I acknowledge also that naked calls use additional margin.
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