Replies to post #41749 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

HI Mac

1) How is selling an out of the money call a hedge? Buying a put would be a hedge.

2) so you sold a leap call and you are buying another short term call as a hedge?

Method 2

1) How is selling a call a hedge, it limits your profits.

2) if the stock goes down, that is when you should SELL the put, then buy back on price increase or let expire, or the premium helps you buy the stock at a lower price.

Then again
I am
Toofuzzy