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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: EnricoPalazzo who wrote (277)4/26/2001 11:23:26 AM
From: BDR   of 5205
 
<<Depends on your perspective, I suppose, but to me that's a good thing.>>

I would agree since I intend to hold the underlying long term, although in a tax-exempt account I am less concerned about selling. I was writing from the perspective of the call writer who enters the position hoping for the maximal return on the position and that return comes if the stock is called away. For him/her it is a disaster to have the stock drop significantly before expiration. For me it is a non-event. I bank the premium and wait for the next chance to write a call.
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