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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 (4479)	10/5/2006 2:28:30 PM
From: im a survivor	Read Replies (2) \| Respond to of 5205

Thanks....I'm pretty sure I understand<g>.....am I missing something?? You took in some cash buy writing the puts...it goes up ( above strike price) and you have the cash you got for writing the puts, you keep your stock and the gains.......stock goes down, you still have whatever cash you got for selling the puts but if it closes lower then strike price, you lose the stock and take a loss( sell stock {called away} which would be the difference between the strike price for the puts you wrote and the current PPS..... Is that not correct? TIA and again, best of luck with it......but certainly fill me in if I am seeing this wrong...or if you have any particular reason to utilize this strategy over other strategies....I normally BUY CALLS, or WRITE CC's on my long positions or do buy/writes on something I dont own, but the buy/write premium looks good... or BUY PUTS....I dont do much selling of puts.....