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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 5:29:00 AM
From: RCVJr  Read Replies (2) of 14162
 
Blankmind: As long as you believe in the underlying stock, it's works out well...the way to lose money is if, say for example, that if/when Viagra is approved, VVUS drops to $8/share. you'd be down $2.00 and have to repair. With a stock like VVUS, as long as you can hold it long enough to allow it to recover, you would do OK - imagine if, as some did, purchasing VVUS in the $30-40/share range and then trying to do damage control all the way down to $11.
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