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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: alanrs who wrote (4442)8/31/2006 7:53:23 AM
From: Bridge Player  Read Replies (1) of 5205
 
Indeed. It's tough to stick with a program of writing deep in-the-money's hoping to get called while seeking 12-18% annualized returns, when the things that you just knew were cheap finally get recognized and take off.

That seems to be a major downside, at least psychologically-speaking, of writing covered calls.

Recent examples are Dow, Ebay, Goodyear, Sandisk (not that this ever got "cheap"), and MSFT.

I still think Dow Chemical is a cheap stock, btw.
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