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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: rocklobster who wrote (544)5/12/2001 6:43:11 PM
From: BDR  Read Replies (2) of 5205
 
Just a word of caution. When we calculate a percent return for a covered call we are talking about the maximum potential return that might result. A fall in the underlying equity can result in a loss. Writing deeper ITM calls provides greater protection against that happening but will reduce the yield. You might be able to get 8% a month but be prepared for some unlucky months along the way.
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