>>Hmm, if one had been consistently selling front month slightly otm cc's on qcom since April 2000, I think they would have retained most of their profits, since those have yielded about 8%/month. Unfortunately I didn't begin until January of this year.<<
I agree completely with your comments on the time premium wasting away of options, and that you are in effect selling time with CC's for a darn solid return.
I do have a problem with the "random" selection of April 2000 to wish you had started. Why did you not select, say October 1999, to wish you had started covering your stock? In hindsight, stocks were overvalued then, also. Hindsight does not help in making current decisions. You started covering when you were comfortable with the process, and you made a good decision at that point. That is all that you can do.
Actually, the true value of this board, and of the CC theory, will be determined when some of our covered stock runs away from us, and the options purchasers make the big money. It will happen.
If your mental response to that last paragraph was "so what, I made my 10%" then this is the place to be. |
