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

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To: Bob Smith who wrote (9121)11/21/1998 10:01:00 PM
From: k.ramesh  Read Replies (1) of 14162
 
Both approaches would work, The approach of buying at the Upper BB would be more aggressive as the game plan assumes you can first write a call about 3 months out, then buy back the call within the 3 months, preparing for round 2. Here I have not seen much discussion on the fact that one may have to wait a while to write again, ie expiry does not always happen at the right price of your stock.
Whereas your plan B is a more conservative play, Just take the CC premiums and allow the stock to get called away, which it has a greater probability, if it is at the lower BB.
having watched the OSX stocks for a while, why would you want to sell cc's on GLM when just holding it at around 10 is likely to be 'better' return wise. You would not have any problems selling the call, as I am almost tempted to buy 'em.
ramesh
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