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


To: Dan Duchardt who wrote (4020)11/1/2002 7:28:47 AM
From: Mathemagician  Read Replies (1) | Respond to of 5205
 
Agreed. His assumption was that the intent is to open and close the stock and option position simultaneously. Obviously, his remarks do not apply (well, they apply in varying degrees) to other situations. And, yes, I do recognize that most of the folks here are not strictly buy/writers. I think his negative tone is a result of his perspective and the point he was making about how some in the business use CC to take advantage of their clients by recommending an inferior strategy simply because it generates more commissions.

M



To: Dan Duchardt who wrote (4020)11/1/2002 9:02:10 AM
From: willcousa  Respond to of 5205
 
One further aspect of CC's is that you can write them on an IRA or 401k portfolio but you can't sell naked puts in those.



To: Dan Duchardt who wrote (4020)11/1/2002 10:06:57 AM
From: DiB  Respond to of 5205
 
IMHO one should not forget about the dividend. A well-timed buy/write (not necessarily nearest month) on the dividend-paying stock may yield additional income...