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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 (4755)	3/1/2007 8:44:56 PM
From: Jerome	Read Replies (1) \| Respond to of 5205

Hey Bridge....this being such a choppy market why would you want to go out to July on a covered call? If the stock starts a downtrend your hands will be tied for a while. In this situation the stock will fall a lot faster than the option premium. Amgen looks like a good cc, but given this market I would do an at the money or a slightly in the money cc. This might reduce the % return, but I would think it a safer position to hold.. JMO...Jerome