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

To: Victoria Walley who wrote (3593)	4/1/2002 1:41:29 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> Last week I wrote BUD Sept 55s, BUD is a very long term hold for me and I do not wish to part with my shares as my cost basis is less than $5/sh. That's the single most dangerous scenario in the cc playbook. For all practical purposes, you've written a naked call, since you're not going to allow the short call to trigger a taxable event on highly appreciated long term holdings. >> Not much premium there, so nothing to get excited about. Which makes me wonder if it's worthwhile doing. The comment, picking up change in front of a steam roller comes to mind :-). duf@definitelyconflicted.arg