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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (4614)	11/22/2006 2:52:07 PM
From: Carl Worth	Read Replies (2) of 5205

they're still termed "naked" because you have no position to mitigate the risk (theoretical only of course in most cases) that the stock could go to zero they would only be "covered" if you were short the stock or bought a different put to reduce the risk...your cash doesn't mitigate the risk, it only allows you to pay the losses, if they were to occur

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