SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (1513)6/27/2000 2:01:00 PM
From: KFE  Read Replies (1) | Respond to of 2317
 
Tim,

What other strategies do you normally use that you think are more efficient?

From the restrictions that you mentioned probably none that you would be able to do. Selling naked puts has the same dollar risk/reward that covered call writing has but is a superior strategy because less capital is required and the rate of return will be better. Selling straddles against long positions will also give you a much better return than CC writing. This is the synthetic equivalent of writing two puts.

I have been trading options since listed trading began and have never met a professional options trader whose primary income was derived from covered call writing. The strategy has value for an account that cannot do nakeds ( most IRA's) or that has to keep long positions in the account (institutions).

Regards,

Ken