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SFO article
Hi Jay (call me Mark) Glad to hear you found the article helpful. Thank you. 1)Why 2 x 5? Good question. To a point, choosing the ratio was close to random - but - because my primary purpose was to sell puts I had to ...
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Buying an Option
Hello Nicolas, Your impression is correct. If you own a call option and then sell it, the position is closed. You are under absolutely no obligations. Although you did not ask, if you sell a call option, and later buy it back, then any obligation ...
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Covered Call: What to do when stock falls rapidly
Hello. 1) If you have a covered call position and the stock declines rapidly, then you have 2 choices. The first is to do nothing and hope the stock recovers. That is not usually a satisfactory choice. It is better to take action in an ...
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Covered Call Questions
Hello Sam, Your questions are excellent, but as far as I know, there are no studies to provide the answers you seek. Nevertheless,,, 1a) The major benefit of covered call writing is risk reduction - and selling longer-term options provides more protection against loss because ...
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Acquisition of MGM
With the recent completion of the acquisition of MGM by SONY, COMCAST and the other partners what happens now for current shareholders of MGM? 1. Will MGM shares stop being traded on the open markets? 2. Do current MGM shareholders receive shares in any of ...
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Questions
Mark, Just recently started trading options and certain aspects seem to good to be true. After looking over theta curves to decide which options pay me the most with the least risk I have concluded that 6 week covered calls appear to be the best. ...
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Covered Call Writing: A Real World Example
If your club has given some thought to using options, but has not yet taken the plunge, this article may provide an impetus to begin. In my experience, the largest hurdle for investors to overcome when they consider writing covered call options for the first ...
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Introduction To Covered Call Writing
Being a member of an investment club is fun. You have an opportunity to expand your investing knowledge, gain experience managing investment dollars, and earn some money. Traditionally, most successful investment clubs adopted a buy-and-hold investment philosophy and carefully chose stocks to buy. The objective ...
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