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Non-Tech : The Critical Investing Workshop

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To: bowledover who wrote (8582)3/22/2000 8:23:00 AM
From: lurqer  Read Replies (1) of 35685
 
re. selling calls vs. writing covered calls

KG4s answer is a good one. This is a slightly different reiteration.

If you own the stock and sell calls "on that stock" then you are writing covered calls. If you don't own the stock on which you are writing (selling) the calls you are writing naked calls. Naked call writing incurs more risk and is frequently not allowed in IRAs.

Hope this helps.

lurking...

lurqer
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