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

To: Mike Buckley who wrote (446)	5/7/2001 1:05:30 PM
From: Uncle Frank	Read Replies (4) \| Respond to of 5205

>> if writing CCs generates more cash, why would that be bad for young people with long investment horizons? Because it's a conservative approach that trades off some of the potential for appreciation in favor of revenue. That's the wrong weighting for beginning investors, who should take a more aggressive stance because of their long investment windows. Their emphasis should be on building their portfolios through saving and then accumulating stocks with excellent potential for growth. Imo cc writing is ideally suited for those who already have sizeable investment portfolios and are looking for ways to produce an income stream that doesn't involve liquidating long term holdings. duf