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Old 09-06-2007, 08:20 AM
mrbaseball mrbaseball is offline
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Join Date: Feb 2003
Location: shortstacked on the bubble
Posts: 2,622
Default Re: articles on covered call options

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The chance that your stock will trade higher than the call price is worth something

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Duh! It's all about risk, reward, and expectation. If you aren't comfortable selling calls then don't. If you are comfortable with it and understand the risks (and rewards) you can enhance your profitability.

Like I said it's more trading than investing and some people think all trading is evil. I'm a trader and not an investor so when I see a good covered opportunity I take it. When writing calls my hope is generally that I DO get called away. The real risk is the stock tanking and getting stuck with it.
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