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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (711)	5/21/2001 3:14:33 PM
From: rocklobster	Read Replies (3) \| Respond to of 5205

Here's another loop...instead of selling the calls covered at the top, why not sell naked calls with a buy stop to purchase the stock over the current price.. that way if you get the top, you pocket the call premium and don't take a loss on the stock, but if you miss the top, you get stopped into the stock and the premium covers you so you still get to make a profit.. this seems to offer more downside protection, and I'm getting awful nervous about long positions right now.. market seems to have gotten into "irrationally exuberant mode" again awful fast... rok