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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: Douglas Webb who wrote (6464)1/16/1998 10:44:00 AM
From: Esteban  Read Replies (1) of 14162
 
Doug,

Thanks for the response. Re:Of course, you probably wouldn't want to be short in that situation, and would have either bought the stock or the call while you had the chance to before the end of expiration day.

Not necessarily. Think about it as the opposite of writing covered calls for a stock you think will fall in value: writing puts with your short position covering you for the shares. One could sell an in the money naked call orignally with the same idea as selling a naked put to enter a position to sell covered calls. It's a stock you would like to be short on, and entering with the premium in your pocket is even better.

Esteban
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