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

To: alanrs who wrote (4442)	8/31/2006 7:53:23 AM
From: Bridge Player	Read Replies (1) \| Respond to of 5205

Indeed. It's tough to stick with a program of writing deep in-the-money's hoping to get called while seeking 12-18% annualized returns, when the things that you just knew were cheap finally get recognized and take off. That seems to be a major downside, at least psychologically-speaking, of writing covered calls. Recent examples are Dow, Ebay, Goodyear, Sandisk (not that this ever got "cheap"), and MSFT. I still think Dow Chemical is a cheap stock, btw.