Re: articles on covered call options
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If covered calls are so lucrative, why not sell the calls naked?
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Some do but as we all know it can be risky. But if I own a stock and have a target where I would like to sell it then why not write the call and (possibly) get some extra return? And if I see an opportunity for something I like (to own) with limited downside (in my mind) and I can buy it and write the call knowing that if I get excersized I made a reasoanble return and in fact my goal why not write the call? And if I can sell calls far enough out where I would be very happy to be called away then why not write the call? And if I want to sell a stock why not write a deep instead and get more return?
All depends on your goal and expectaion.
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