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  #1  
Old 11-28-2007, 04:56 AM
pig4bill pig4bill is offline
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Default Re: Why dont value investors write more covered calls?

Desert Cat's last two posts exemplifies my response above, people are greedy. That's why they don't do covered calls.
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  #2  
Old 11-28-2007, 09:31 AM
ahnuld ahnuld is offline
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Default Re: Why dont value investors write more covered calls?

wow I totally forgot about the taxes. I guess it makes sense when you think a stock is approaching IV and you are ready to dump and move on, but yeah, the fact that your money grows tax free is huge.
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  #3  
Old 11-29-2007, 02:01 AM
pig4bill pig4bill is offline
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Default Re: Why dont value investors write more covered calls?

[ QUOTE ]
wow I totally forgot about the taxes. I guess it makes sense when you think a stock is approaching IV and you are ready to dump and move on, but yeah, the fact that your money grows tax free is huge.

[/ QUOTE ]

All you have to do is roll your calls forward before expiration. There's a chance they may get exercised early, but it doesn't happen often.
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