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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (8194)8/13/1998 10:05:00 PM
From: virgil vancleave  Read Replies (2) of 14162
 
thread is kind of quiet today. just thought i would contribute some possible profitable strategies. market internals are weak and indicate that there is much left to the downside. just my opinion on the direction but the market stats are facts. taking this into consideration, has anyone thought of doing covered puts. that is shorting the stock and selling puts. a couple of candidates to look at: cmgi, lcos, lhsg, lhspf, file, tklc and a few others.

i have only 2 lomgs left and have sold a covered call on the one which trades options. the other long i have a call position. but i am short sctr and unfortunately it doesn't trade options. i have some free equity as of this afternoon and will most likely be shorting and selling puts as described above. seems to me to be a quite profitable venture with very little downside risk. less risk than even covered calls in this market environment.

anyway, good luck all.
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