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Strategies & Market Trends : The Covered Calls for Dummies Thread

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To: Uncle Frank who wrote (4793)	3/10/2007 4:52:14 PM
From: Sonki	Read Replies (2) of 5205

HI UF ! good to see u r still around ! As for CC (cov call), i always felt it was more riskier then buying options long. I have seen some mutual funds (vepax) that give u 10% in divindent by doing coverd call. You dont need to do home wrk, u get less return but u r not taking a single stock or even 10 stocks risks. Does anyone know other mutual funds (besides vepex) that do cc ? i think of covered calls as replacement of bond money and not part of my equity. (given ofcousrse that i b puts as well, like a collar) I do coverd calls for stocks that are really dead beat and lots of bad news are priced into stock. I did mot and glw erly in jan at very close to low. Occasionally, if if stocks shows me big premium I b puts way below mrkt to protect big down side. People seem to forget that stock can gap down and not recover more then u ever collect in premium . Difference between renting a house vs renting a stock is that rent does drop off in value even if price drop.

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