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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: William who wrote (1871)8/10/2001 12:47:33 PM
From: PAL   of 5205
 
William:

When you discuss an option from the call side and wants to be ignorant what put is, then you are operating with a handicap. CSS does not make it a general option thread where as you know the demise of a thread for that was created purpose.

Whether you call it CC or buy/write, it is an option. You have to know the risk and you have to know the alternatives. One cannot operate in a polyanna's world where only the winners are brought out and hide the loss.

When a thread is called a dummy thread, it must be assumed that people (especially me) want to learn from others and those who have other ideas will share their knowledge. Apparently that assumption is not true. There are people on this thread who just do not come here to learn but to bash others.

CCS is not about turning the thread into general option discussion, but about how tho enhance the return and reduce the risk of CC. Yet the arguments against arfe all but childish which include "ah, but I am doing in my tax deferred account, ah but i have to pay taxes, oh, i have to use margin ... (even though I specifically stated that to have cash in case of assignment)".

Doing cover calls without knowing the risk is like driving blindfolded. No one knows the direction of the market, but at least know the risk of any option strategy, whether CC or others, and be aware of ways to minimize.

Good Luck to all.
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