Ok, so lets say the stock is trading at 50, and the next month 60 strike calls are selling for $1.25....if I sell/write those calls and the stock price starts to rice up towards 60 (and the premium for those calls increase) I could be liable for any amount the stock rises over $60.00, but could I just buy the stock prior to it getting to $60.00 to make it a covered call, and essentially removing any liability that could be created from upward movement? Is this a good strategy?........................ Thanks...
2007-02-09
15:07:33
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2 answers
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asked by
Duckboy007
1