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Politics : Idea Of The Day

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To: Lee who wrote (18969)	7/18/1998 12:27:00 PM
From: Judy	Read Replies (1) of 50167

Another cautiously bullish options strategy ... On a fundamental sound stock locked in a trading range, with proper entry on shares ... one could generate consistent income by selling calls at the top of range, and selling puts at the bottom of range. If the stock takes off and the shares get called away, profits are the short puts plus stock proceeds. If the stock dives, well ... you got stopped out of the existing shares and the puts will let you automatically reenter at a lower cost basis. I often do this on investment quality stocks that I trade or stocks that I don't mind holding for a certain timeframe.

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