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Strategies & Market Trends : Rande Is . . . HOME

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To: rocklobster who wrote (49326)	3/18/2001 2:38:22 PM
From: HiSpeed	Read Replies (1) of 57584

I'm lost as to why one would sell covered calls "to recup. losses". This only limits your upside while your downside remains. If the call seller expects the stock to stay flat, than he has an argument for collecting the time premium of the call. But if the holder expects the stock to continue down, I think he would be better off to simply unload the stock rather than sell calls on it.

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