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Subject:  Re: Covered Calls Date:  8/29/2007  5:10 PM
Author:  Rayvt Number:  59012 of 78166

Man, I thought this topic got beat to death 6-7 years ago. Just goes to show that sometimes an idea never dies.

#1) Ok, writing a covered call is *exactly* identical to selling a cash-secured naked put. Exactly. Identical. As in "no difference except in how you think of it". Consult any options book. Except there are more traction fees. So if you really really like doing covered calls, why don't you sell cash-secured naked puts instead?

#2) There was a study done several years ago. I used to have a copy of it until my disk-crive crashed. ;-( The gist of the study was that, overall, writing CCs for income was equivalent to a collecting a dividend. It this is true, then CCs are just an inferior way of collecting dividends.

#3) CC