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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Sal Milani who wrote (6174)12/17/1997 1:35:00 PM
From: R. Gordon  Read Replies (1) of 14162
 
Sai,

If you look at it, these cost a fortune to get into and the margins are a fraction of what you get with regular stocks. These can be great tools to hedge a position in mutual funds or to play the entire market up or down.

Oex is now at 463 - that's 46,300 to buy the position and if you wrote the Jan 465 call you get 1,100 - which is 2.15%. Not great or even good considering the risk.

Richard
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