Anavex Life Sciences Corp (AVXL)

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If so, he will pocket some cash. He is de-risking to some extent-not altogether.

I don't disagree with the essence of your post except that no de-risking will occur except for the $1/share premium Steady will pocket. If one wants to de-risk with options, he needs to buy puts or adopt a different strategy. I sell puts on one of my stocks almost on a weekly basis. That does effectively lower my cost basis a little so long as the stock price holds above the strike price after considering the premium, but it does not de-risk that investment in any manner. In fact, if the trade goes against me and is exercised, I have to buy shares and my portfolio risk actually increases because I have more capital at risk.