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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: Casaubon who wrote (9601)2/6/1999 11:43:00 AM
From: Herm  Respond to of 14162
 
Yes Casaubon! Selling a CALL (CCing)is also known as shorting a call(s). The long call(s) is what you buy hopefully using your call buyer's money to offset part if not all of your cost for the long call(s).

If you can imagine a one year time-line, by CCing and buying sideshows calls/puts it's possible to generate a profit even if the stock starts, cycles up and down, and ends at the same price at the end of the year. The more the stock increases that fatter the CC premies!