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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!
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To: RBane who wrote (8319)8/21/1998 12:13:00 PM
From: virgil vancleave  Read Replies (1) of 14162
 
I am not allowed to trade naked calls or puts in my account. I can do covered positions and if you understand how they work, and it appears you do, you can still get the job done. Just costs you a little more. My commissions are pretty low since i use regal, so i still win in the end. presently, i have no covered positions. I just bought back my calls i sold and am now trying to sell another covered position on my only long, which is down but still above my buy price. ticker is anik.

As herm keeps saying, doing covered calls can help you play the market volatility. If you buy your calls back and then resell them, you can double up 2 to 3 times a month. It is well known that stocks never go straight up.

I like the covered put strategy in negative markets since it is protection against the downside. and when the decliners lead advancers by the margins they have been recently, i feel it is much safer. The put also gives you the same opprotunity to play the volatility, since as the stock slowly rises the put lowers in price and you can again double or triple up in a short time. And as I stated earlier, stocks fall much faster than they rise. This fact is important since I do have a full time job.

BTW, I am still short lcos. I saw the huge negative for the market and decided to hold my position. Looks like i may have made the right call and could still end up making some money on this one.

Sorry for the long post. I think we will still see dow -500 this afternoon. good luck
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