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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Trebor who wrote (1828)10/26/1998 12:52:00 PM
From: MrGreenJeans  Read Replies (2) of 15132
 
Voice Against

I'm a voice shouting in the wilderness about the merits of covered calls, but they sure work for me.

The problem is if the price of the equity rises the call gets assigned and your stock is taken away from you by someone else. If you are long the stock why would you want that to happen especially since you are long and think the price will rise? Otherwise you would be short.
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