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Hi 1poorguy,

And in both cases, do I specify shares or contracts (with the knowledge that if I do shares I have to specify in multiples of 100)? Like I said...the mechanics of placing the order correctly isn't intuitively obvious to me. How the options actually work, I think, are straight-forward.

NO and this is important.

One contract represents a 100 shares of stock. If you place 100 contracts you could be made to buy 10,000 shares of the underlying securites if the put is exercised.

There is a discussion on the Fool on the Hill board involving the whole world against me. I like the strategy, but there are those who do not. Xfatott made some good points about just selling the stock rather than selling the call, but this in my opinion this does not fit all sizes of situations and writing call and put strategies are profitable when well thought out and preferrable to just selling the stock. When trading stocks you have to well think out those trades too. In my opinion there is no difference.

But check out the Fool on the Hill discussion board

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