The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Seeker of Truth who wrote (410)	5/3/2001 2:59:25 PM
From: EnricoPalazzo	of 5205

In other words maybe the CC tactic is best for a sidewise market and actually inferior for a straight up market? Ardethan's statistics are counter to what I'm saying. Not necessarily. Just as we never had a market go straight down in the 90's like it did recently, it's quite possible that this year will be straight up in a way we've never seen before. The most dangerous part of back-testing is a false sense of security (someone should have told that to Merton & Scholes <gg>). CC is definitely inferior to straight holding in straight up markets--my strategy underperforms if the increase is > 10% + premium%. It just appears that on average, straight ups don't happen that often (I think that even CSCO went up > 10% "only" about 30 months out of 120).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next