How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: blankmind who wrote (7137)	3/22/1998 1:00:00 AM
From: Ira Player	Read Replies (2) of 14162

I have a question, for anyone that knows how they handle the other side of the trade. The benefits of writing covered calls are obvious. However, for lightly traded issues, someone making a market in them must take them into inventory. They are in the business to make money on the spread, not take a position in the market. Particularly a position that deteriorates with time, even if the underlying doesn't. How do the Market Makers hedge the position when they buy calls from you? TIA Ira

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