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Technology Stocks : Compaq

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To: Mike Gordon who wrote (17845)2/22/1998 10:55:00 PM
From: Bob L  Read Replies (1) of 97611
 
<When ever I write a call and subsequently get exercised, I generally turn around and sell the next months put.>

That is an interesting technique. What advantages do you see? Compared to buying back the stock and writing another call, it saves one commission. But if you had bought back the call just before expiration and then wrote another call, there would be the same two commissions as letting the stock go to assignment and then writing a put.

So there must be another advantage that I'm missing.
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