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Strategies & Market Trends : cash flow investing for retirement

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From: tyc:>	7/24/2011 9:31:51 AM
	of 94

One of my favourite stocks is QUX. They have new mines in the pipeline that promise eventually to be vary profitable. However, that profit is years in the future. In the meantime the stock price will be volatile, no doubt. After trading as high as C$15, the stock dropped to $13. At that point the $15 strike calls I had written expired worthless, and I wrote some $14 calls. These calls expired in-the-money and therefore were assigned. I managed to buy them back at $14 and immediately wrote August $15 calls. As I write these calls too are in-the money. The result of all this activity is that the capital value of the stock holding has remained virtually unchanged. But I have enjoyed call-income of C$1,000. QUX pays no dividends. Message 27509881

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