The Motley Fool Discussion Boards
Financial Products & Services / Discount Brokers
|Subject: Re: Optionshouse?||Date: 7/30/2012 6:38 PM|
|Author: captainccs||Number: 49998 of 50191|
True. But then I'm a skeptic about the risk/reward proposition of selling covered calls. I suppose if you're holding some "dog" of a stock (one who's price changes little) that's paying a nice dividend, you could make this work reasonably well. But what stock would that be? I've had no luck finding a good candidate that I'd really want to own.
As they say, your mileage might vary. I've had good and bad experiences selling cash secured puts and have adjusted my parameters accordingly. Since the time I figured out how to calculate the real return of covered calls, I've done very well with them.
I've had no luck finding a good candidate that I'd really want to own.
You have to price quite a few deals to find the ones worth doing.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|