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

To: Uncle Frank who wrote (1132)	6/20/2001 6:56:00 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 5205

UF: You are comparing two objectives and affixing a particular instrument to each objective. Of course the outcomes are different. But I am saying that the same objective can be accomplished by either CC or Put. Sure, if you have shares and want to end up with them it's a bit looney to go write a put and risk ending up with twice as many shares as you wanted. Similarly if you don't want shares, why would you go ahead and buy some? However, over the long run a cc strategy might see you called out. Instead of repairing by rolling up for economic loss, you could merely flip to the put strategy until you ended up getting assigned and then go back to cc. John.