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Strategies & Market Trends : Covered Calls

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To: tchphysics who wrote (60)5/17/1998 8:21:00 PM
From: EJ  Read Replies (1) of 86
 
Jeffrey,

This obviously qualifies as hindsight with respect to FPAM, but one thing to consider whenever you enter a new position is whether you want to be limiting you upside potential vs. your downside. While there are a lot of schools of thoughts on CCing, I tend to fall into the school that says don't limit your upside and leave your downside exposed when you know a significant event is going to occur soon.

For what it's worth...

Cordially,
EJA
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