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Alias Born 12/13/2008

Re: maksim post# 21

Saturday, 12/13/2008 4:31:12 PM

Saturday, December 13, 2008 4:31:12 PM

Post# of 189
I am new at writing calls, I've been writting puts out of the money so far with moderate success...
Which is the best strategy if the stock goes down sharply?
For example in a position I am planning: UYG @ 5.55 and writting call mar/09 strike 5 @ 1.75. If we consider that the breakeven point would be around 4.4, what would you do if the stock falls sharply to 3 again like it did in November? Any strategies would be appreciated.

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