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To: tsyl who wrote (58210)8/14/1998 7:50:00 AM
From: DoggieDude  Respond to of 176387
 
Yes you can buy back the calls to stop the bleeding. However, if you have a major event (like sunbeam) where the stock suddenly gaps down 10-15% on an open you're never going to fully recover. I just wanted to make the point that selling cover calls is essentially a way of betting that the stock you're holding won't go anywhere; and if you believe that then why own the stock.