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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: backman who wrote (9132)11/22/1998 10:12:00 PM
From: Caroline  Respond to of 14162
 
The downside of selling the call is theoretically unlimited opportunity lost. It's the probability that you're playing, though (unless you sell a call against AMZN, in which case the opportunity cost lost is infinite).

The pay back is ultimately a zero cost basis in the stock.

That's in an ideal world, doesn't often happen.

CB