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


To: rocklobster who wrote (795)5/25/2001 2:47:31 AM
From: tekboy  Respond to of 5205
 
i think we will see a correction before much further upside.

as the B52s said...

"Rock, Rock, Rock Lobster!
Down, down"

dtb



To: rocklobster who wrote (795)5/25/2001 9:11:21 AM
From: William  Read Replies (2) | Respond to of 5205
 
>>and i think we will see a correction before much further upside. <<

Given that you see a correction I would think that you would want to write calls, not puts. In a falling market the value of puts increases and the value of calls drops. If I am going to be short something, I want it to be something of decreasing value and not something that would require additional funds as an exercise of a put would.

William



To: rocklobster who wrote (795)5/25/2001 11:54:42 AM
From: BDR  Respond to of 5205
 
<<I am struggling with whether I should sell puts, or sell naked calls, or buy stock and sell covered calls, or just continue daytrading..>>

From Roth's book, LEAPS , Chapter 20, Writing Uncovered Calls, the first sentence:

"The opening advice is short and simple: Don't do it!"