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

To: rrufff who wrote (4513)	10/18/2006 2:15:41 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 5205

>> Do you use it more to capture a high premium in the put or as a hedge against your short? I've just started using the vehicle, rrufff. I don't have any long term shorts in my account, so I'm writing naked puts in situations where I feel the premium will drop to zero by expiry. That means my outlook is the price of the underlying stocks will stay flat or increase in the short term. We all know how difficult it is to make predictions like that, so my safety net is that I only write against stocks that I won't mind owning at my strike price minus the premium. duf