Re: Why dont value investors write more covered calls?
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implied vol was very low in a mkt trending upward so often value investors over the past 5 years probably didnt want to cap their upside. now that implied vols are at very high levels i'd guess that you are going to see more and more covered call writing as the risk-reward profile improves.
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are you suggesting that implied volatilities are currently/will soon be higher than actual volatilities? or that implied volatilities were lower than actual volatilities over the past 5 years? what is your reasoning for suggesting that the risk-reward profile is improving?
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