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

To: BDR who wrote (3980)10/11/2002 10:32:17 AM
From: Uncle Frank  Respond to of 5205
 
>> I would side with dUF. In this market it is pretty hard to make a case for covered call writing when the long equity position keeps eroding so fast.

Actually I would taken the same position if the market were in a bullish phase, Dale. My personal mind set is that covered call potential should be completely disregarded during the stock selection process, and regarded as gravy afterwards. That's based on having seen many well formed plans to harvest rich cc returns go awry due to declines in the underlying, even in strong markets. Bwtfdik.

duf



To: BDR who wrote (3980)10/15/2002 12:44:11 AM
From: Fargonaut  Read Replies (1) | Respond to of 5205
 
I have seen you refer to hedge wrappers. What intrigues me about them is that nearby calls decay very fast, and a Jan 2005 put, for example, decays very slowly, furthermore in the first half of its life it loses 1/3 of its value. Putting these two options should be profitable.

At my age (60) I am becoming more interested in capital preservation. Do you think that a hedge wrapper is secure enough for someone with my time horizon?

F


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