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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 (9896)3/18/1999 11:07:00 AM
From: Nigel_H  Read Replies (3) of 14162
 
Herm,

I'm afraid I don't quite understand the scenario you described for the CS play. You said:-

Another $2.00 (25%) on the stock if the CC is exercised and you are
called out.


How could this work if you only have a LEAP and no stock? What would happen to the value of the LEAP if it went from out-of-the-money to at-the-money?

Your help would be much appreciated.

Nigel.
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