Covered Calls

[Joe Stocks]

gtober, I love covered calls. What a difference it has made in my monthly performance. Better returns with what I perceive to have less risk. This month I have showing a 4.5% average return on the 6 largest accounts I manage. The S&P, DOW and Nas are all down for the month. In addition, these are my lowest monthly returns this year. After the first of the year I got very aggressive in doing covered calls in all my managed accounts. I love the fact that time decay is adding to my accounts every minute that goes by including weekends. I think what has also helped is the hedging I do with the ultra-short etf's. They have strong call premiums as well. These same accounts on average were up everyday last week on up days and down days due mostly to this hedging strategy.

I hope to start experimenting with those covered leaps soon.