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.

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

To: BrooksR who wrote (4321)	4/14/2005 3:03:15 PM
From: RP Svoboda	Respond to of 5205

Looks like you just found this thread. Its been pretty dead around here lately. Have to agree with you in this environment simply because VIX / VXO / VXN are at historic (8-12 year approx) lows. I used to sell volatility, and it was a great gig in the right market environment. Boda

To: BrooksR who wrote (4321)	7/27/2005 6:15:14 PM
From: KCMuu	Respond to of 5205

Anyone want to get more active here? Hello - new to posting here @ SI, have read several of the boards for years. I'm interested in evaluating CC strategies, and I am very open to constructive critique. Brooks R - if you are still around, or anyone - I agree on the risk assessment of CC vs Naked Puts. But I'm less certain that a bull put spread will do better in the long run. Sure, you have less $$ at risk, but don't you need to overcome the premiums to earn profits? Can you do this consistently? In my view, those premiums are a built in negative bias that you need to overcome. My approach to CC is apparently a bit different than most here. I see people complaining that their stock was called. I sell ITM calls each month, and expect them to be called. I collect the premium and so far, I've been happy with the returns. For me, for the past 12 months, lower volatility than the market, and higher returns. Can I continue to do it consistently? I don't know, that is why I keep looking for ways to evaluate the strategy - any help is appreciated. Thanks - KCMuu