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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: straight life who wrote (36278)	12/23/2009 10:27:29 AM
From: Wallace Rivers	1 Recommendation Respond to of 78850

There was no intent on my part to stir anything up. Whether or not there is BS attached to my profile, the post was not a "lecture," I was just relaying my experience. I'll further qualify what I've posted to say that this is my experience in times that I have been a (covered) call writer, which are numerous, some successfully, some unsuccessfully. I've pocketed the premium, and capped my upside. This is from optionseducation.org, the subject - Options Strategies:Covered Call Benefit While this strategy can offer limited protection from a decline in price of the underlying stock and limited profit participation with an increase in stock price, it generates income because the investor keeps the premium received from writing the call. At the same time, the investor can appreciate all benefits of underlying stock ownership, such as dividends and voting rights, unless he is assigned an exercise notice on the written call and is obligated to sell his shares. The covered call is widely regarded as a conservative strategy because it decreases the risk of stock ownership.