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To: Math Junkie who wrote (1862)10/27/1998 8:59:00 PM
From: MrGreenJeans  Read Replies (1) | Respond to of 15132
 
Perhaps

If you have so much bet on one company that its bankruptcy makes you lose your home, then your problem was caused by lack of diversification, not covered calls

Yes or it was caused by the fact you thought you were "hedged" on the downside using options when you were clearly not.



To: Math Junkie who wrote (1862)10/27/1998 11:32:00 PM
From: Trebor  Read Replies (1) | Respond to of 15132
 
>f you have so much bet on one company that its bankruptcy makes you lose your home, then your problem was caused by lack of diversification, not covered calls.<

Exactly. With all due respect, I think Mr. Greenjeans was reaching with that last analogy. Anyone who bets the farm on one stock deserves to lose the farm. Covered calls won't save him, nor will any other strategy.