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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: R Sass who wrote (7685)6/18/1998 9:50:00 AM
From: Michael Hart  Read Replies (1) | Respond to of 14162
 
<It is important to realize that selling puts is the same as trading covered calls.>

Isn't this true only if you take the inverse of the CC trading pattern ? In other words don't you get approximately the same profit and loss model with selling puts on a stock that has reached the lower end of a trading band as opposed to CC's at the upper end of a trading band ?

Thnx Again,

Mike



To: R Sass who wrote (7685)6/18/1998 9:43:00 PM
From: Tom K.  Respond to of 14162
 
Ralph,

I agree with you that the profit graph is basically he same for CC's and naked PUTs. Having done both, and with a strategy for cash flow, the PUTs seem to be psychologically easier for me. Maybe that will change if I start getting burned, but so far it's a nice approach for a person that is conservative.

Tom