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.

Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (2645)	5/13/2002 12:18:21 AM
From: FuzzFace	Respond to of 3558

I understand, but if you expect the underlying to go up, why give away your upside? Just go long. Writing covered calls exposes you to downside risk at a fixed return. Most people I've heard from who use the stategy want to keep the common, and expect to. They are looking to lower their basis and biding their time in a stagnant market. Some already took a bath in the underlying and are writing at a strike that would be breakeven. But I've never heard of someone actually wanting to get the common called away from day one. Oh well, I learn something new every day.