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

To: Bridge Player who wrote (4466)	10/3/2006 2:02:50 PM
From: Jerome	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>> When you write a covered call you are short the stock....and you can do nothing with that stock until you unwind that position.....You could buy a put to protect yourself against some horrendous downside. With most brokerage firm that I know of you cannot be long and short a stock at the same strike. A short position and a long position at the same strike just cancel each other out. Keep the whole thing simple. Buy a stock, write a covered call and see how it plays out. Jerome