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

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To: Linda Kaplan who wrote (6221)12/21/1997 1:26:00 AM
From: R. Gordon  Read Replies (1) of 14162
 
Linda,

I'm sorry about your losses. When you sell covered calls as you did with VVUS, should the price of the stock go up by expiration - you keep the premium --- take the money and run.

If you own tech stocks, there is a chance that in Jan. and Feb. the market could come around again as institutional investors look for new places to put their money.

If the price of the stock is above you net cost basis, you could consider writing calls or buying inexpensive puts.

Good luck,

Richard
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