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I have some questions.

What happens when you write a covered call of a stock that is going down all the time. What is the risk?

What happens with a written put in a bull market? the stock is in an upward tendency. Am I winning the premium only for watching the stock to go up? What happens to my funds, am I able to use the entire quantity of my funds?
For example: I write a put of a $5.00 stock A with a strike price of $4.00. I received a premium of $1.00 dollar. (100 *1= $100) Does my fund will be available for me? Or I will not be able to use $400 because I have an obligation of buying the stock A with a price of $4.00 each (in case the stock price goes down instead of going up).
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