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

To: Uncle Frank who wrote (1875)	8/10/2001 12:24:29 PM
From: PAL	Read Replies (1) \| Respond to of 5205

You miss the point. Not at all. You know darn well that unfortunate post which was widely known in SI community. A well intentioned individual trying to help a financially distressed lady by selling cc on elon, even buying the stock on margin for get leverage. At that time the post received kudos, but the case disappeared in thin air when the cc backfired. Covered calls should be done in an environment where the market is neutral to slightly bearish... change that to where the market is rather neutral, from slightly bearish to slightly bullish ... now, iis that better? Besides the fact that it is a complicated play, it requires the use of margin, which is not allowed in sheltered accounts. Quoting the famous wise words of Uncle Frank "Perhaps you should consider adding "imho" to remarks like that". Perhaps you should read and learn before just labeling as such without trying to analyze. If you are on a dummy thread, be humble and admit to yourself that you are trying to learn from others, and not just dismiss a strategy without knowing knowing what it is. Put is the reverse of Call . As simple as that. But to Uncle Frank "ihho" that is complicated. LOL Of course it requires margin. No one is advocating to do it in a sheltered account. The combination of which would do just fine. Do the cc in sheltered account and do the "covered" put in regular account. If you are against a strategy that you are not familiar with and close your eyes to it, you are akin playing as a cornerback with one hand tied behind your back. The same thing with CC which is dealing in option - a risky undertaking - and unwilling to at least know what a put is and how it works. There are others who are willing to expand their horizon, and it seems that yoy are doing a disservice by dismissing other ideas as casino approach. I do not know the history of this thread, whether it is a migration from G&K. I came to this thread to do 2 things: to learn from others and to contribute whenever I can. My knowledge in option is just a drop in an ocean. When I suggest a strategy, I invite others to tear apart what's the positive and what's the negative. Now I challenge you to to show me that CSS that I outline in previous post is riskier than just CC. Go ahead, tear it apart, I sincerely want to learn. If you can't do not label it as a casino activity. I have received PM's asking me to expand what I posted on CC. Therefore I know there are several persons who like to learn more. I was expecting that a person like you is open minded and be professional enough to let discussions flow for the sake of other interested peope even though you cover yourself with blinders. Sadly, I expected too much. Good luck to all.