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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: PAL who wrote (1869)	8/9/2001 10:30:49 PM
From: Uncle Frank	Read Replies (1) of 5205

>> I can show you disastrous results from a covered call around 1 1/2 years ago. You miss the point. I am ltb&h in several, what I think are great companies. It is a given that I will hold them through several up and down economic cycles. By writing cc's over the last 18 months, I am well ahead of the game. >> Covered calls should be done in an environment where the market is neutral to slightly bearish... Perhaps you should consider adding "imho" to remarks like that, since your comment differs from conventional wisdom. In his book, LEAPS, Harrison Roth describes the outlook conducive to covered calls as "mildly bullish" (see page 54). >> I hope that you can conclude that "covered short strangle" is more conservative than just covered call. Besides the fact that it is a complicated play, it requires the use of margin, which is not allowed in sheltered accounts. uf

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