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Author: zman49 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121217  
Subject: Re: Call option writing Tax Issues? Date: 6/10/2001 7:08 PM
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terryfool48,

I do not think there is a Foolish way to write covered calls because the Fools do not consider option trading to be appropriate for investors.

The subject of covered calls has been debated regularly on the "Options - You Make the Call" message board if you want to take some time and search through it. As a starting point I would suggest

http://boards.fool.com/Message.asp?mid=13022551&sort=recommendations

which is the most recommended post from that board.

I also suggest you read the article at

http://www.cob.vt.edu/finance/faculty/dmc/derivs/Essay34.pdf

which I believe supplies a realistic view of writing covered calls.

I will say that I do write some covered calls, but I do not do so often. IMHO the disadvantages usually, but not always, outweigh the advantages of the strategy.

Good Luck,
Z
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