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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (20173)	6/30/2014 1:54:31 PM
From: TheNoBoB	Respond to of 34328

That's one of the downsides in a covered call plan. When the underlying runs higher, your stock winners get called away and you miss out on further gains (or have to buy back higher), and when it drops, you're writing calls at lower and lower prices which will then eventually get taken out (rinse and repeat). It takes a pretty deft bit of timing to be able to pull it off, and let's face it, they're paid by a percentage, not by success. Not a bad idea at all in a sideways or slightly down market, but in the 'trees growing to the sky' market of late, not so much.