The Blue Collar Investor

116. How to Execute a Covered Call Trade with a Buy/Write Combination Form


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Covered call writing trades can be implemented in 2 ways. We can use legging-in where the trade is accomplished in 2 distinct trades and with the buy/write combination form where the stock is purchased and the option sold simultaneously with a new debit limit order.
Both approaches are shown using a real-life example with CORT.

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The Blue Collar InvestorBy Alan Ellman

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