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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 (9055)11/17/1998 6:26:00 PM
From: k.ramesh  Read Replies (1) of 14162
 
Appreciate this thread, My question with WINS is
If you can track the BB's and RSI so diligently why not just sell the stock, instead of the CC, Assuming you know it is going to be a down cycle, selling the stock is better than selling a CC and waiting for a point to cover, as the stock goes down farther than the CC.
The point is that you can never assume that an RSI of 70 is too high or that a downward slope on the RSI is likely to last etc. In addition stock commissions are lower than CC commissions.
Still, I am not against CC's as it somewhat alleviates the ' have to be right two times' problem with trading stocks all the time.
Just my 2c and looking for some comments.
Ramesh.
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