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

To: rydad who wrote (1910)	8/10/2001 6:51:42 PM
From: BDR	Read Replies (1) \| Respond to of 5205

<<But (imho) isn't there an assumption that the stock we choose should be a good quality stock that if it did drop significantly in price, we would be glad to own it? This is my perspective as a ltb&h investor. >> From what I have read here I think that is a fair assessment of the sentiment of this thread. Whether you write covered calls, sell puts or do something more exotic, do it using a stock that you don't mine owning when the dust settles because that is exactly what may happen. But, if you have such a stock and you don't ever, ever want to let it go for years to come, think twice about covered calls. The more you are exposed to the market the greater your risk (my and I think Roth's point). Writing covered calls reduces your exposure slightly. Writing puts increases your exposure significantly. But, if you feel that owning 1000 shares of QCOM is a good thing and owning 2000 shares is an even better thing, then you may have a different opinion about whether a combination is "more intense" than stock.