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Buy Write Strategy. The strategy is also referred to as a covered call. The analysis is the same, except that the investor must adjust the results for any prior unrealized stock profits or losses.
If the shares are already held from a previous purchase, it is commonly referred to as covered call writing. Buy write strategy fact sheet what is a buy write strategy? This article covers the “buy & write” strategy which, when used correctly, can increase income, your average cost, and downside potential.
What is buy write strategy? Right now (feb 9, 2007) the vix is near a historical low. As this is a “covered” call, carl can fulfill his obligation under the option contract by delivering the 200 shares of. A trader who holds a long stock position will sell call option contracts in a quantity that equals that stock position in order to collect the premium from the options.