SI
SI
discoversearch

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 : Options 201: Beyond Obi-Wan-Kenobe
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: tyc:> who wrote (693)9/23/2002 1:01:29 PM
From: Ira Player   of 1064
 
Covered calls also have increased transaction costs, both commission and slippage.

I do not know why anyone would transition from cash to a covered call position. A short put is more efficient and allows higher leverage, if that is desired.

Covered calls do have a place in the investors bag of tricks however. If you have a highly appreciated asset in a taxable account, (maybe you bought MSFT in '86) a covered call can be a tax efficient method of profiting form a slight downturn without incurring the taxes a sale would trigger.

Ira
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News