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

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To: tuck who wrote (10736)5/12/1999 10:11:00 AM
From: Jonathan Thomas  Read Replies (1) of 14162
 
Tuck,

In each scenario except the last one (the stock doesn't drop), the puts will increase in value, increasing your profit margin. Even a 3 point swing will most likely make you a point of profit on the puts, more if you go with the June 10s. I think you would most likely make money, and at the least, cover a downside. If you don't see it coming back at least 3 points, don't bother, but I would buy them, hoping to get something for them on a dip. This stock is too jumpy not to to get down enough to turn them into a profit (IMO). BUT, you know more about the fundamentals than I do. Let me know what you decide to do...

Ryan
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