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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Road Walker who wrote (1831)8/8/2001 2:15:10 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> The primary mindset difference is that the buy/write trader should be willing to own the stock at the buy less the call price, where the covered call writer (IMO) should be willing to lose the stock, if the trade goes against him.

Well put, John, but it doesn't address the the small set of folks who have captured extremely large gains in long term positions and won't accept a result that would trigger a taxable event. People in that enviable position tend to wait for peaks, sell further otm, and use repair strategies if they find themselves in danger of being called.

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