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Strategies & Market Trends : cash flow investing for retirement

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From: tyc:>	6/25/2012 1:45:30 PM
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Replying to a posting on another thread: >>"I don't have any real conviction which way it'll end up going." Anyone with "real conviction" is probably wrong anyway. I am investing for income (dividends and covered calls) while hoping for some eventual upside from several speculations. I expect to lose on covered calls because of downside risk of underlying. The risk is ameliorated by dividends and option premiums, with some upside provided by o/m strike prices. The risk is smaller than being long only, and is commensurate with capped upside. They say that naked calls are risky, but their consequence is only a "short". and the selection of an o/m strike can result only in a short at a higher price than the current market offers. It sounds less risky than some of my covered calls Next month, if market values have declined, I shall consider adding a naked call to the covered calls, making them ratio-writes.

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