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Strategies & Market Trends : cash flow investing for retirement

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To: Paxb2u who wrote (36)7/25/2011 9:43:11 PM
From: tyc:>Read Replies (1) of 94
 
I too have been "thinking about it". If you come to any conclusions I trust you'll let us know your thoughts.

It's strange, I lived through the 2008/9 decline fully invested and without any method . I can't remember being upset at all...... I felt I'd seen it all before. I can't help but feel that with this method I'd do even better than I did "last time".

Remember that if I continue to write out-of-the money calls, all assignments are profitable when measured against the stock values when the call was written, even though they might be unprofitable against some earlier market price. It is only when the call expires worthless that the position might see a decline of market value. And the decline is hedged by the premium received. Again, we are better off than we would be without the hedge. So why should there be concern about a possible decline when my commitment to the market was made years ago, and has been profitable ?
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