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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Tom Chwojko-Frank who wrote (1114)6/20/2001 2:46:54 PM
From: Uncle Frank  Read Replies (2) of 5205
 
>> I'm deciding if Rambus is a company I want to own. The premiums seemed decent at the time, but I'm not in any hurry.

Tom, I'd encourage you to concentrate on the company and treat the premiums as a secondary consideration or better yet, ignore them all together. High premiums are generally an indicator of a risky investment; the buy-write crowd is drawn to them like moths to flames, and usually offer suffer similar fates.

duf
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