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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: Jill who wrote (25905)5/23/2004 1:44:34 PM
From: Howard R. Hansen  Read Replies (1) of 60323
 
If you are a longterm investor and sell covered calls, it is often not a good strategy,

I agree for buy and hold investors selling covered calls in a rising market can limit an investors profit. But what if an investor needs to turn some of his holdings in stocks into cash to meet IRA withdrawal requirements or for living expenses. In this case if one selects a stock he or she is willing to sell, a target selling price and a time frame in which the sale should take place than selling covered calls can add a significant supplement to the cash raised from the sale of the underlying stock.
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