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Technology Stocks : Cymer (CYMI)
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To: Ira Player who wrote (17477)5/13/1998 12:06:00 PM
From: Curlton Latts  Read Replies (3) of 25960
 
Covered call writing lowers your downside risk by lowering your cost basis.

The fallacy that people fail to grasp is that the big upside return has been terminated by the covered call - which is the whole basis for taking downside equity risk in the first place. Not a good strategy.

I could understand selling puts however. 99.9% of retail investors would not sell puts though. That percentage gives you a clue as to its profitability. big.

Good Luck To Each and All

Curly

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