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

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To: Nancy who wrote (560)3/9/1997 10:19:00 PM
From: Herman J. Matos   of 14162
 
Basically, you sell (write) as many at the money calls and turn around and buy at the money calls yourself using the premies. What you are looking for is to use your call buyers money to finance your repair to break even on a trader's bounce back up off a 50 day or 200 moving average. It does not cost you anything to repair,

Other way is to simply sell calls three or four months out and deep in the money. That will get back some of your loss value and you can use the volatility to erode your call buyer's premies.
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