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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Dan Spangenberg who wrote (4430)7/14/2006 4:03:52 PM
From: Uncle Frank  Read Replies (1) of 5205
 
>> I think I may like to try some ITM buy/writes with the intent that they do get called. Any direction on good current candidates for this would be much appreciated! I'll analyze some of the stocks listed a few months back, but wondering if there are not some better ones.

Covered calls are a conservative income producing strategy for ltb&h practitioners. The buy/write approach is much riskier, since it involves predicting the short term movement of a previously unowned stock, which can be strongly influenced by market conditions. Plain vanilla CCs and the buy/write variant are both considered bullish in nature, and Mr. Market's current mood seems decidedly bearish. I think you've picked a bad time to get your feet wet, but that's jmho.

duf
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