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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (4915)	6/13/2011 7:53:18 AM
From: tyc:>	Respond to of 5891

Thanks you for your valuable response. It's a "keeper" for me. Selling calls runs the "risk" of selling shares at the price you select, higher than the price you could otherwise get at the moment. For me, the risk is that the sale will not be made and the decline in stock price continues, leaving you only with the income of the call premium. Selling unprotected short calls involves the risk of being short at your strike price. As you say, the short of the index could be considered a market hedge, which might be considered a more conservative position, rather than more risky. That's my problem.... unconventional thinking ! Your response prompts me to "Straighten up and Fly Right"