ajtj99's Market Pulse

[jdaasoc]

I would believe call writing to be a big factor coming into play if we are starting a corrective phase. The potential of having stocks in the financial sector being assigned away is not reasonable expectation for the foreseeable future.

In contrast, PUT buyers can always be snaked out of their profits with yesterday's quick rally.

With the recent downtrend, most calls written for NOV are going to expire worthless so these call writers will be going back to well for replacement DEC options assuming the status quo will hold.

In 2000-2002 time frame serial covered call writers made consistent income when the only other cash returns seen during that period were dividends payouts for most equites holders.