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Technology Stocks : WDC/Sandisk Corporation
WDC 236.39-2.8%Jan 23 9:30 AM EST
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To: Art Bechhoefer who wrote (25893)5/22/2004 8:55:12 PM
From: Jill  Read Replies (2) of 60323
 
If you are a longterm investor and sell covered calls, it is often not a good strategy, as the stock goes up and down...you could repeatedly get caught on the wrong end--you may have to sell your stock, causing tax liabilities at a time you don't want them, etc etc

Buying puts is safer if you feel the stock has gone up a lot and is going to retrace, but you want to keep it. Why? YOu risk only what you paid, and you may actually make a profit. It's a bit of a gamble but you have more freedom. Selling puts or selling calls, you can't necessarily make your own choices later on--the market will make them for you.

That's how I see it anyway. I used to sometimes trade covered calls but now I don't really invest anyway, so I don't hold stocks longterm, and I'm too much of a scaredy cat to sell naked calls.
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