How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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

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To: micny who wrote (8425)	9/1/1998 5:08:00 PM
From: Herm	Read Replies (2) of 14162

Good dialog everybody! There is no such thing as a dumb question when it involves real money! You are better off knowing the risk/reward ahead of the game. Along the lines of what Vincent was saying. I have used CCs premies as a way to raise cash for my margin calls. Going with ITM CCs several months out (4 to 6) can really bring in big cash. That will buy you time! Now, if the stock price drop(s) is greater than the CC premies then you will be faced with the same margin call and you will most likely have to dip into your pocket with new cash. It is wise to play it safe and not tap out all of your margin. Leave yourself plenty of room for price fluctuations.

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