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

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To: VincentTH who wrote (10146)3/29/1999 8:54:00 PM
From: Herm  Read Replies (1) of 14162
 
Alot has to do with how many blocks of shares are on the table on the bid side and ask side. With no volume, I have noticed my bid limit buys are greeted by a drop in the bid/ask. Yes, those MMs are forcing you to drop you price in order for them to turnaround and have an out with a 1/8 profit.

If you placed a market order they would do the same faster than you can say covered calls. In a blink of an eye those guys and gals will drop the price, take your money, raise the price and sell for an instant 1/16s to 1/8s+ profit. For sure, with some stocks it's easier to trade the stock in and out!
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