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Strategies & Market Trends : The Covered Calls for Dummies Thread
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From: BrooksR4/14/2005 2:09:35 PM
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Covered calls ARE for dummies. I know, I used to do them. :) If you do CCs for a while (aka buy/writes), you will find that naked puts have exactly the same risk profile. Then, you will find that both CCs and naked puts tie up a lot of margin and are risky. That will lead you to bull put spreads which are safer and require less margin. The bottom line is risk and your return on investment (ROI) %. If you are doing CCs now, do yourself a favor and look into bull put spreads. Hint #2, you will be much safer doing them on indexes or ETFs than on stocks with their unexpected news events.

Brooks
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