Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (276)	4/26/2001 3:12:11 AM
From: EnricoPalazzo	Read Replies (3) \| Respond to of 5205

The "worst" outcome with covered call writing is that the stock falls and the calls expire worthless leaving you holding the stock alone. If you are uncomfortable about a stock, don't think that covered calls will make it a better stock. Depends on your perspective, I suppose, but to me that's a good thing. If it's a long-term position, there's no permanent loss of capital. To me, the "worst" possible outcome is when a CC gets called for a huge profit to the buyer. That's a real, permanent loss of capital.