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

To: BDR who wrote (409)	5/3/2001 10:58:28 AM
From: Seeker of Truth	Read Replies (2) \| Respond to of 5205

"We haven't discovered a source of free money." Agreed. But I'm in a quandary. There's no sense in fighting the facts. I lost a tremendous bundle during the recent crash but I'm way ahead on the options and I think both of those are true statements for most of us. Options may not be free money but they sure look like it now. Why do they behave this way? Every time I've been in a situation that LOOKED LIKE free money it quietly or noisily disappeared soon after. Why is it so relatively easy to make money with options at the present juncture? Maybe because the market went more or less straight down before so we were losing a lot, at least on paper, in the stocks but making a lesser amount in the calls? And now, when we get called we are losing the opportunity that the people who didn't sell CC's are benefitting from. In other words maybe the CC tactic is best for a sidewise market and actually inferior for a straight up market? Ardethan's statistics are counter to what I'm saying.