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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Thomas Tam who wrote (2928)11/7/2001 12:04:46 AM
From: Uncle Frank   of 5205
 
>> How do these transactions compare when evaluated on an annualized basis?

I don't think annualizing a one month return is meaningful, since there's little chance it will be replicated 11 more times in succession. Even the potential return I cited for the covered LEAPS at expiration is misleading, since PoetTrader is planning on closing the position on any significant dip.

>> a bird in hand is worth two in the bush.

I agree. Personally, I would have opted for Door #1, but rolling out the cc is a valid repair strategy.

duf
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