The Covered Calls for Dummies Thread Message Board

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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: marcos1 who wrote (1005)	6/11/2001 11:14:22 AM
From: Uncle Frank	of 5205

>> I am kinda new CC. Have been trading stocks for about 7 years and want to get into CC writing. Seems like a good way to generate some cash flow. Covered calls are a great way for long term investors to gain an income stream without disturbing core holdings, but in truth I don't see it as a very attractive proposition for traders. >> What are your thoughts on selling near by options verses options that are 4 to 6 months out. Is it just a matter of personal preference or do you generate more consistant cash flow selling 1 or 2 months out? Due to the way premiums are computed, you can make a significantly greater return by selling a front month cc two months in a row than you can by selling a two month option once. I think this has been covered in detail in earlier posts and would strongly recommend you review the archive of posts on this thread to get some background before you start a cc program. duf

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