No. of Recommendations: 1
Hi, Terra!

The catch is, you are extremely likely to have your shares called away with any one of these trades, possibly at a loss that exceeds whatever premium you received. Not to mention the commission friction of trading that often. You certainly would want to think twice about doing this with shares you want to keep for the long run. Many people set up covered calls in a different account than the one holding any shares they want to keep.

If you're a member of the Options premium service, I strongly recommend that you ask your question over there for a more detailed answer. There is also very useful information in Options U in that service.

Bruce
Ticker guide for AMT, FTNT, MAR, ORCL, UBNT

See all my positions at http://my.fool.com/profile/CMF_bru5ce/info.aspx
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