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Repairing a losing covered call
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FOT-May 2007-1
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Covered calls are rarely a lost cause, even if the stock falls. Before taking a hit, consider these alternatives.
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Detailed Description
Last months article on covered calls focused on getting the most out of a winning covered call position using a technique called "rolling," which consists of buying back the short call and selling a same- or higher-strike call in a later-expiring month. Here well examine how to fix flat or losing positions with similar tactics.
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