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

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To: CENTrader who wrote (766)3/13/1997 7:31:00 AM
From: Baja Don   of 14162
 
Hi Bill,

E-mail me you address again. I must have left it in Las Vegas. I'll be copying that info for you today, ( the highlights from the Laughlin Corporation Manual) Good idea about the Nevada thread. I think Steve's CPA isn't thinking of alot of the strategies that can be done with a Nevada Corp. and a thread would get a lot of ideas flowing from those who are doing it.

Mark- Buy right with a net debit. The advantage is you wipe out the spread.

Example- ROST bid 27and 1/2, ask 27 and 3/4 at yesterdays close. March 30 call is a 1/2 I think. So when you would place your order. The net debit would be 27and 1/2 minus the 1/2 you would be getting for the call equals 27 rather than 27 and 1/4 that it would cost you to place two separate orders. I've done this alot.

Its best though to wait for a run up and then sell the call like Maureen said.

Hope this helps.

Don
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