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Technology Stocks : Gateway (GTW)

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To: Wayners who wrote (6012)6/16/1998 10:03:00 AM
From: yard_man  Read Replies (2) of 8002
 
Depending on your basis, you might want to consider near term puts right before earnings to protect your investment. Tricky thing about calls is when to sell them. Do you sell them on a pre-earnings rise or hope they beat estimates and sell after earnings? The latter is obviously much more risky, but if you sell them before you may sacrifice upside.

My experience with covered call writing has almost always been one of sacrificing further gains for current income. You can always buy the calls back and I have done this, but you can't always roll up for a credit. If you get in the situation where you can (roll up for a credit) you should always do it.
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