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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (7292)4/15/1998 2:01:00 PM
From: Braddoe  Read Replies (1) of 14162
 
Hi Herm and others on the thread!

<<You can make a cool 40%-50% per year with the plain CC techniques.>>

I have been investigating Covered Calls and reading this thread for a while and I am wondering if this kind of return is realistic over several years. Are there any people been doing CCs for years, and are they getting this kind of return (or less, or more)?

I can understand if people do not want to reveal their exact ROI, but I think it is important to know what kind of numbers are realistic over the long haul, not just over a couple of lucky months.

I have seen many web sites on covered calls and seen Wade Cook tell how you can be a millionaire in 3 years or less, but I am skeptical of that. I have just started reading a couple of Lawrence McMillan's books and what he says is less rosy, but more believable.

Is there any way to protect downside risk so that many months or a years worth of profits aren't evaporated a stock that stumbles (or tumbles like VVUS)?

Are covered calls really appropriate for the conservative investor?

Thanks,
sorry for all the questions I know you get many on this thread

Brad
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