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September 4th, 2009

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Buying a call Ditmar bassist? If not, can you explain this line …?

I read the following line to this site: http://www.callwriter.com/newsletter/deep-itm-covered-calls.htm "[We are not fans of buying deep ITM calls. It's too big a bet on the movement of the shares. And if you're sure a decrease, the purchase of one or two attacks below the share price would be much cheaper.] "is in the second paragraph. No I understand … the purchase of a call Ditmar is a movement upward, right? "If you are sure to decline," suggests that the buyer called Ditmar expected a reduction of stocks. If that is the case of option Ditmar be worth less money, possibly to the point where it no longer is ITM and becomes useless. Am I missing something? Thanks!

Taking into account paragraph just prior to selling covered calls, I think mistakenly wrote "buy" which referred to "sell". I agree with the statement that the purchase of a seat to coverage of the population goes down, it often makes more sense that the sale of a call. Unless you expect the upward movement of the action is limited to anyway.

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