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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?


To: Brad Griffin who wrote (742)2/25/1998 2:21:00 PM
From: Madpinto  Read Replies (1) | Respond to of 2241
 
I did not say writing covered calls is not a viable trading strategy.
I'm glad you have been able to make money with your strategy. However, selling calls against long stock has almost exactly the same risk as selling puts. If you consider selling naked puts a conservative strategy, I would disagree with you. I do not advocate buying or selling options (nor do I discourage it), but I consider buying options more conservative than selling them. This does not mean I think buying options is a better or more profitable way to trade. Please realize your higher gains probably correspond to the larger risks you take.