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Chapter 6. Eight winning option trading ... > Covered call writing is a good strat...

5. Covered call writing is a good strategy for what appears to be a bullish environment, and covered put writing is generally good for what looks like the bear

This is one of the few strategies where you use futures and options together and have the ability to profit on both legs. The strategy works well in a modestly bullish or bearish environment as well. It is not risk free, but it is less risky than the outright purchase or sale of futures. Furthermore, by using my limited pyramid strategy discussed in the previous chapter, you have the additional flexibility to capitalize on a major move when using covered positions.


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