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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Tommaso who wrote (25116)3/8/2005 9:52:49 AM
From: Knighty Tin  Read Replies (1) of 116555
 
T, a 10 year annualized return of 13%+ is pretty solid.

Buy and write call is a bullish strategy, just not as bullish as holding naked stock. I just think their idea that they can buy and write 60 day calls 10% out of the money as a long term strategy is naive to the nth degree. But they do have the prospectus guidelines to allow them to change that to no writing, deep in the money writing and put buying.

They will probably allow stocks to be called away. If they buy and deliver, they lose the short term gain that allows them to pay their distribution, which you cannot afford to do often in an income fund.
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