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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Mike Buckley who wrote (537)	5/12/2001 6:13:30 PM
From: rocklobster	Read Replies (1) of 5205

yes you are right. the profit is 150% but the return is 250%. 1000 turns into 2500 compounded monthly at 8% by my calculations. thats 250% of the original basis, but only 150% profit.. hehe emphasis on only. I noticed some Buffett fans around here, and Buffett mentioned in his last report that a 6% annual return was about the most that anyone could ever expect over the long run in equities, so it seems to me that covered call writing really juices the return. It is my opinion that the market ALWAYS provides opportunity, so I will not care if I am called out of positions in this experiment. I will just roll the money into something else. rok\

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