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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (7639)	6/14/1998 6:00:00 PM
From: Slava Chechik	Read Replies (2) \| Respond to of 14162

Herm and others, can you comment on that: " Myth #2. CC is a good strategy, because most options expire worthless. If most options expired worthless, then there would be "excess returns" to be made from selling options. If this were true, then, in a competitive market place, opportunity-seeking capital would rush to realize those "excess returns". To earn these supposed returns, many options would be sold, driving down option price to the point where excess returns were no longer available. At such a point, it will be no longer true that "most options expire worthless" From "Options for the stock investor" by James Bittman Any comments form your experience? Regards, Slava Chechik