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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (11914)	11/27/1999 3:42:00 PM
From: Richard Gibbons	Read Replies (1) \| Respond to of 14162

Yes, I guess that's true that, if you put the stop loss at the same price using the short call as you would with a short stock, then you'll lose less. I guess one of the risks in using short calls is that you get over extended, because you short more calls than you would stock. But that's kind of a mental thing. One of the things that bothers me about short calls rather than short stock is that you can lose lots when you lose, but can only make a little when you win. So, many cycles of selling calls could be wiped out by a single gap up if the company gets acquired or something. Richard