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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Bill Wexler who wrote (1460)7/14/1998 2:10:00 PM
From: Y2k_fan  Read Replies (1) of 4634
 
<<
I think it is safe to say that the vast majority of retail call volume comes from buys to open, a significantly smaller percentage comes from covered call writing, and the lowext percentage comes from naked call writing. >>

For every call option opened, there must be one covered call written or naked calls open. No matter who initiated it.

The premium is low because most of them are covered calls, I believe.
And this create hidden selling pressure on option expiration date. So, it is indeed bearish.
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