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


To: Zelek who wrote (4463)9/30/2006 7:50:09 AM
From: alanrs  Respond to of 5205
 
Of course if you sell the stock it's not a covered call anymore, plus if you sell the stock further (short) you must eventually buy the stock to cover that short (no time decay there), plus shorting the stock and selling a naked call strike me as being the same thing.

The advice to get the MacMillan book (he's written several) or one by Thomsett (Getting started with options) is good. It will save you a lot of confusion.

ARS



To: Zelek who wrote (4463)10/3/2006 11:17:18 AM
From: Bridge Player  Read Replies (1) | Respond to of 5205
 
<< What about writing a covered call and then selling the stock short to protect against downside can you do this>>

Would that not essentially be the same as writing a naked (uncovered) short call, with no position in the underlying stock?