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Technology Stocks : Intel Corporation (INTC)
INTC 36.91-1.1%Dec 31 3:59 PM EST

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To: tcmay who wrote (137505)6/17/2001 6:32:27 PM
From: maui_dude  Read Replies (2) of 186894
 
Tim, Re : "claims here about much money people have made are usually misleading"

You may be right in that there is no guarantee in making more by writing covered calls as compared to just holding the stock. I think it all depends on how you predict the market to behave. However, *if* you can predict the market pattern, options trading will *always* make more money (by writing covered calls in a flat market, writing out of the money calls in a slightly bullish market and so on).

Now you can argue and say that it is not smart (and possible to do it reliably) to time the market. But I really doubt if there are many investor who do not try to time to market and play into the prediction game, alteast to some extent. Otherwise, an intel investor will have almost no gain to show for since August 1997.

A combination of good prediction and writing covered calls (with rolling over the calls if got called or wait till it dips again) will be a statistically more productive investment strategy. BTW, A stock is just a special case of a covered call, which expires at infinity and you get zero premium.

Maui.
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