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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Carl Worth who wrote (4738)2/21/2007 11:02:47 AM
From: TimF   of 5205
 
I guess I see the main source of disagreement.

Its a semantic/definitional one, more than it is a different understanding of how options work.

Your considering "matching the market" that tends to go up over time as neutral. Uncle Frank and I (and apparently McMillan and Roth) consider neutral to mean anticipating little or no change. Going up would be bullish, even if the market goes up more.

In effect we are using a zero baseline, and your using the baseline of the long term average return of the stock market.
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