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Technology Stocks : Cymer (CYMI)

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To: Steve Wood who wrote (17466)5/13/1998 10:11:00 AM
From: slipnsip  Read Replies (2) of 25960
 
"A covered call is just a synthetic naked put. The risks are, for all intents and purposes, the same. Yet for some reason, writing naked puts is considered very risky while writing covered calls is not."

Please tell me you are kidding. Somwhere along the line you forgot about the long stock position required to write "covered calls" thus you are covered on the downside.

Downside is no different than that of holding the stock by itself. Actually less due to the premium you get from writing the call.
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