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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: hpeace who wrote (6629)1/31/1998 11:36:00 PM
From: SFW  Read Replies (1) | Respond to of 14162
 
hpeace,

If you are bullish on SMOD, why not buy a call outright instead of going with a put bull spread? I understand that you get premium upfront,however you are limiting your upside while your risk is the same as buying a call. I agree that a spread is less risky than owning the stock but it does not buy you the stock until April because your gains are limited to the premium that you collect.