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maksim

12/17/08 12:14 AM

#77 RE: maksim #76

Just seeing if sig works.
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inflationista

12/17/08 9:50 AM

#78 RE: maksim #76

what i like about covered calls is that if i buy stocks i WANT - i get paid to hold them over time -

if i make a good buy and the stock goes up a little, i then write the call to guarantee a certain amount of profit, but if it doesn't get called, no biggie, i write against them again -

i guess what i was wondering was with OTM/ITM does that have to do with strike + premium?
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birdguy

12/17/08 12:25 PM

#79 RE: maksim #76

While I don't disagree with the results in the article there is something that is ignored in articles like these.

When I have sold a covered call that could be called at expiration I tend to cover it and move to a future month. I will do this if the move meets my profitability standards and if I believe that the new option has a good chance of expiring worthless. Doing this takes the call out of the catagory of expiring in the money. Thus the statistics could be out of whack by a unknown amount as I presume that others do this also.

How large a percentage is this? I don't have the faintest idea but could it be substantial?

Birdguy