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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dr. Id who wrote (2630)10/11/2001 1:08:27 PM
From: Uncle Frank  Read Replies (2) of 5205
 
>> But isn't the volatility what creates good premiums on calls? If we wait for the market to go back into the doldrums, the premiums will also recede.

True, but personally I don't consider current premiums rich enough to compensate for the risks. I've been writing cc's all year with the firm belief (prayer?) that my underlying positions would recover sooner or later. This is later, and I'm not going to cap my recovery prospects, particularly during earnings season.

jmho,
uf
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