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: Mathemagician who wrote (1699)	7/31/2001 1:20:40 PM
From: Dr. Id	Read Replies (1) \| Respond to of 5205

The case can be made that you actually have less premium, as a function of time. But isn't this only true if you hold the position for the entire time? What if you sell further out calls but buy them back long before expiration? dDI

To: Mathemagician who wrote (1699)	7/31/2001 4:06:21 PM
From: Alias Shrugged	Read Replies (1) \| Respond to of 5205

dM Great comments. And, yes, I prefer the larger downside cushion the long dated calls afford. If someone is able to successfully write 12 monthly calls instead of 1 12-month call, they will earn higher returns. But, for me and my current market view, expecting to write calls successfully twelves times is courting disaster. In order to do so, the stock must repeatedly remain in a fairly narrow window over a period of 3-6 weeks. Writing 12 calls only gives me 12 opportunities to screw up the trade! -gggg-