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

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To: NateC who wrote (10307)4/11/1999 12:19:00 AM
From: David Wright  Read Replies (1) of 14162
 
Roger,

I really liked the May165cc scenario better. You have a better chance of getting exercised at 165, which given your concerns about the stock, might be a good idea, and you get a higher premium when you sell it, which gives you better downside protection. I also like the 145puts you mentioned before. Since you plan to do your cc in May, I'm not sure why you would go with a July put. If the put is intended as downside protection, seems to me like you want it as cheap as possible, and to pretty much line up with your CC. Or am I missing a strategy point here?
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