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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: VincentTH who wrote (7149)	3/23/1998 1:19:00 PM
From: Ira Player	Respond to of 14162

Vincent, I understand the equivalence of option combinations and long or short positions. Buy Call + Sell Put + Short Stock = Neutral Market Risk I just have trouble believing that a MM will buy my covered call into inventory to make money on the spread, and sell a put (to whom, since then some other MM is in a market risk, and they would want the spread for themselves), and short the stock. There must be a method to reduce market risk for the MM. Holy grail, maybe, but they must do it or they wouldn't be in business long with all the profit being collected by covered call writers. The profit comes from somebodys pocket!!! Enjoy the ride, Ira