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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: PAW who wrote (13482)1/13/2001 12:12:47 PM
From: Herm  Respond to of 14162
 
You picked up the stock cheap to begin with. If the stock is moving up from that bottom, waiting a day or two before writing the CCs would have lowered your net cost more relative to the higher strike price sold. In other words, you take in more CC premies. What you are doing is "legging into" the CC position.