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

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To: Robert Graham who wrote (794)3/13/1997 6:59:00 PM
From: J. P.   of 14162
 
Where is the risk in selling an option with strike above your
net cost basis, and getting called out with a profit?

A runaway? How about a cheap upstrike insurance call?
A flatliner? How about the premiums?
A dropper? How about rolling down the calls? Downstrike puts?

It's been my humble experience that any profit no matter how
small is better than the wouldas couldas and shouldas!

As I'm always eager to learn, please illuminate on risk factors
using specific examples, instead of using broad generalizations.

Thanks!

Jim
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