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Technology Stocks : Compaq

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To: Andreas who wrote (17739)2/21/1998 12:06:00 AM
From: ed  Read Replies (1) of 97611
 
If you retired and need constant income every month, and had 1 million in cash and do
not want to put into the bank for 6% fixed income, then you write calls month after month.
So what if you lose the stock? Just bought back the stock and write call again. Statically
speaking the option players can't win all the time , some times they win and sometimes lose, which means as an call option seller, you just write calls everymonth and earn constant
income everymonth.Generally, sell the calls one week after option expiration day everymonth, then you may not only earn on the stock price appreciation but the premium of the calls you sell.
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