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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Seeker of Truth who wrote (393)5/2/2001 11:00:03 PM
From: FaultLine   of 5205
 
maybe, just maybe, the expected return from selling calls on less volatile stocks works out to be the same as that from selling covered calls on the more volatile stocks when we include the possibility of loss on the underlying stock.

Indeed, that could be true. I personally do not know how to evaluate that but I'll keep my eyes open for some reference to that issue. This is an interesting question because it directly relates to risk-selection.

--fl
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