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Strategies & Market Trends : NEUTRAL TRADING STRATEGIES

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To: Ralf Toumi who wrote (4)10/3/1996 10:52:00 PM
From: hans albrecht   of 18
 
Ralf,
there's nothing wrong with selling out of the money calls, as long as you are long the stock. Many funds don't mind getting callled away on their options because they make money on the stock as well as the premium. They can show a good return on their sheets. It's almost a win-win situation. If you write calls and the stock goes down, you make the premium, if it goes up, you make even more.
Hans
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