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Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 50232  
Subject: Re: Optionshouse? Date: 7/30/2012 5:18 PM
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You wrote, You make it sound like one can only buy options. One can also sell them. The more expensive they are the more the reason to sell than to buy.

True. In fact I started to write about how I thought selling cash-covered puts might be safer/better than selling covered calls. But then I decided I was rambling and not adding to the conversation.

Also, Options can be used as hedges as you point out, they can be used as gambles and they can be used to produce income. Investor's choice

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.

- Joel
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