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It is the same. For a covered call you have to buy the stock anyway. If inside an IRA it is not on margin. So you use your cash to buy the stock or cover your short put. The risk curves are identical. With covered calls you have commission buying then selling the stock and writing the call. For...

I trade cash covered shot PUT's in my IRA at www.thinkorswim.com. You can do any strategy you want in an IRA at TOS except for naked calls and short stock. The only reason they do not allow those is the risk of a margin call that you could not make because you cannot contribute more money in...

Actually I apologise if my comments came across as applying to Jack. I was looking at the original post about Trader28.

Because in addition to being tolls they are losers, liars and have no life. They are pathetic folks that can generate no joy in their life except by pushing others down. They best way to deal with trolls, flame baiters is to report them as necessary and DO NOT reply. If you don't feed them they...

I use a brainwave machine or a light/sound machine. It by itself will be useless to you. The machine assists you into a dream / alert / relaxed or state of your choice. I find that I am able to relax and focus, suppress fear/greed and be more objective in my trading when I am trading. But you...

I have been to several of them and will go again this year. Yes, there will be vendors hawking wares. But the event is free. However what I find most appealing is that I have been able to hook up with the real deal traders, made friends and learned how to properly trade from these folks. Of...

When you feed trolls they fail to die. I'll wager IQ146 = stock777.

OTM options is a suckers game. Read Cottle's book. He was one of the founders of thinkorswim and while not a beginners book is probably one of the best single resources available.

If you have time to waste and glance at his previous 4773 posts, most are drive by's. Just a waste of perfectly good electrons.

Ah. I see you are out trolling again.

I hope you are being 100% sarcastic and not serious.

You are not addressing the question. Once a person gets to 'hedging' they have moved beyond the "Investor" buy and hold types. How they got into the position is irrelevant. The risk profiles are the same yet one is called by most brokers 'conservative' while the covered (cash or short) put is...

Regardless the risk profiles are the same. HOw can one be more aggressive and one conservative if the risk profiles are the same. There is an attorney on a local radio show each week that discusses suing the various brokers for misleading information that causes folks ( in particular retirees)...

No. I don't mean to give impressions. I mean to state clearly. The fact that they clearly consider a covered (short) call a 'conservative' strategy and a cash covered (short) put a 'most aggressive' strategy is both misleading and false. The risk profiles are exactly the same. I am neglecting...

You are kidding right? Lets look at one of the larger brokers, Fidelity. They have the following levels defined for options. 1 Covered Call Writing of Equity Options 2 Purchase of Calls/Puts (equity and index), and purchases of Straddles/Combinations (equity and index) 3 Equity...

Absolutely. At least that is what all the brokers keep saying. And surely they must be correct.

Wait! Wasn't this thread about making a killing in covered calls this week? Say it ain't so Vern. :eek: I think it should have been that covered call sellers GOT KILLED in this market. I am sure the original title should have been get killed.

That old IRS rules is yet another broker con job. The IRS has no rules about the IRA. Any decent broker will allow you to do any strategy in your IRA except for naked calls and short stock. The reason those 2 are not possible is that you may be at your contribution limit for the year and unable...

Yes. If you are married to the stock then covered calls are a way to enhance returns if the stock is not called away or reduce your loss if the stock tanks. Whether holding the stock is a good idea is a whole other discussion. A better strategy, though usually not the best strategy, is to buy a...

In theory and in practice. Regardless of how much the underlying tanks, the net loss is the same whether it is a cash covered naked put or a covered call. The net worth reduction is still the same. The only difference is whether you sell the stock for xxx less than you paid for it or they...