Swing Trading With Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Swing Trading With Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dan Duchardt who wrote (35)	8/6/2001 8:03:08 PM
From: underdog430	Read Replies (1) of 88

Thanks Dan. I see you posting on the Covered Calls for Dummies thread. Do you share the enthusiasm that so many people seem to have? What do you like about covered calls? I was at the Money Show this weekend (a relatively small and quiet affair compared to previous years) and there was a lot of enthusiasm for writing covered calls. I was even having dinner with some people last night when one of them shared his enthusiasm about writing covered calls, particularly with respect to how "safe" it is. I'm just more skeptical about the strategy, especially if people are doing it all of the time. If volatilities are really high then selling premium can pay off but I don't consider it easy or safe. In the Schaeffer's Monday Morning Outlook, Jerry Wang refers to the popularity of covered call strategies as another sign of complacency, adding that "What is additionally disturbing is that this interest in selling call premium has continued even though option volatilities (the price that can be collected) are low on a historical basis." Mark

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next