The Covered Calls for Dummies Thread Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: BrooksR who wrote (4321)	7/27/2005 6:15:14 PM
From: KCMuu	of 5205

Anyone want to get more active here? Hello - new to posting here @ SI, have read several of the boards for years. I'm interested in evaluating CC strategies, and I am very open to constructive critique. Brooks R - if you are still around, or anyone - I agree on the risk assessment of CC vs Naked Puts. But I'm less certain that a bull put spread will do better in the long run. Sure, you have less $$ at risk, but don't you need to overcome the premiums to earn profits? Can you do this consistently? In my view, those premiums are a built in negative bias that you need to overcome. My approach to CC is apparently a bit different than most here. I see people complaining that their stock was called. I sell ITM calls each month, and expect them to be called. I collect the premium and so far, I've been happy with the returns. For me, for the past 12 months, lower volatility than the market, and higher returns. Can I continue to do it consistently? I don't know, that is why I keep looking for ways to evaluate the strategy - any help is appreciated. Thanks - KCMuu

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next