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I have a long position in a stock that has realized significant gains over the past few months. Because of those gains, the stock is now overweighted in my portfolio. I still believe in the company long term but I would like to cut my holdings in half. Instead of just selling half, I thought I would write covered calls. That way, if the stock rises I will sell half of my holding while getting paid for the calls. The alternative is to just sell half now. Either way, I will not see the upside if the stock shoots through the roof, so I don't consider that a downside of the covered calls. The only downside I see is if the stock tanks and the premium I get paid for the calls doesn't cover the loss.

Are there any other options strategies I should consider?

Taxes are not an issue since this is all in an IRA.

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