If I buy stock and write covered calls on the stock, can I then place a stop loss on the stock? Then I could protect my downside by selling the stock when it goes down, and then buy back the 'naked' call at a low price? (June 27, 2000)

  Yes. You have to be able to trade naked options in your account and have the margin requirements met for the options you have sold in order to do so if you are to leave the position open over night.

Previous Page Next Page

Return to Table of Contents

Legal Disclaimer