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Old 11-27-2007, 09:49 AM
ahnuld ahnuld is offline
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Join Date: May 2005
Posts: 10,945
Default Re: Why dont value investors write more covered calls?

I think he meant implied/actual as the same, but both have been huge since the summer and look like they will stay that way for the near future. It does look like 2-3 month rolling covered calls is the way to go..now if only I could write them.

Also the problem dc pointed out, options dont trade on most of my companies, is the main problem.


This seems like the best idea: "So I think it only works if the stock is getting near your IV estimate and then you can write calls every month until the stock is called. Assume you bought KO at $40 thinking it was worth $65. Right now you could make 35-45 cents a month writing $65 calls. Or you could write $62.50 calls for about $1.25."
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