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To: ild who wrote (45215)	1/25/2006 4:47:53 PM
From: Knighty Tin	Respond to of 116555

He quoted Crain's, which was 180 degrees wrong, as usual. The risk in covered call writing is not the stock going up. That is what you WANT to happen. It is, as Bernie states correctly, when stocks go down. Hence, the concept of buying funds that also buy puts under their stocks. The other thing that doesn't make sense is that Bernie counts going from a premium to a discount in a closed end fund as a failure of the fund manager. It isn't. All a manager can do is manage the money he has. The buying public determines the discount or premium. For example, IGD is one he knocks. The manager has earned a total return of 2.78% on the fund's net asset value in the 8 months (to Dec 31) the fund has been around. During the same period, Tricontinental Fund (TY), a traditional growth and income fund, has earned 2.67%. Why no outrage about TY? One reason is, nobody is pushing TY, so there is no apparent boogeyman to blame. The other is that TY saw its discount shrink 4%, so shareholders did pretty good, even though the manager underperformed the manager at the safer IGD fund. That being said, I kind of agree with him. I sold one of those funds, and you can guess by my comments which one it was. <G> I'm not super proud of my baby, but it's not the ugliest kid in the nursery, either.