I agree with your analysis. The only time I would encourage covered calls is to just use them for a trading position, but, you can certainly miss out on the upside.
I have indeed left money on the table using covered calls, selling calls too early, writing naked calls, etc. (By the way, writing naked calls on BRCM is not a very good idea.)
Looking at trading in a little different way: if I take a position and double it, then reinvest the proceeds and double that, etc. etc., everyone knows this trick. I have learned never to look back at what I could have made, this is just too agonizing; sometimes, I look back at a loss and comfort myself that I got out before I lost even more - if I ever hit the peak or low, then I was plain-old lucky and enjoy the feeling.
Just keep looking forward and embrace risk as an opportunity: On this thread, I apologize for preaching to the choir.
Happy trading! |
