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Success with covered calls is about timing and selection. Pick a VRX and I don't care how much premium you took in because losing 90% of your stock value kills you either way. Yes, you do better than the long only holder in a bear market but it's a Pyrrhic Victory. As for that "boring...

How about providing me with the Cliff Notes version of what you think the takeaway is from that link. Reading 36 pages of a study is a bit much for me to digest in order to guess at what you are implying in rebuttal.

Underlying plus long put is synthetically equivalent to long call (similar results) so if placing the two legs simultaneously, buy the call. On an expiration basis, the risk of (U+P) is the distance to strike plus the cost of the puts. There is no chance of blowing up because most of the...

The opening of a new series has an OI of zero. Not a problem in a stock where near the money series are active. But that's a small nitpicky one time event. Avoiding a low liquidity series is a good idea for a trader but not necessarily so for the average B&H Joe writing covered calls for...

It makes sense if you want income over growth and you're willing to accept the asymmetric R/R ratio.

Many claim that all they have to do is buy a dividend stock and they can live off of the dividends. The DGI crowd is fanatical about this but they conveniently ignore that the stock must rise in order to turn that so called "free dividend money" into Total Return. I know that you get it now...

Yes, you sure showed me what Total Return will be ** IF ** Verizon rises $4.50 But what's your Total Return if it doesn't rise ???

Since I retired young, my income is variable and all over the place. I'm just happy to be worth $1 more this year than I was a year ago and anything on top of that is gravy. Had Obamacare been available in 2008, I would have qualified for a nice healthy subsidy of $6-7k a year. Thanks to...

First, thanks for sharing all of your personal information. Nice story line but it all has nothing to do with Yield versus Total Return. You still seem to think that the VZ dividend is FREE MONEY. Let's roll back the years. It's late 2007 and VZ is $42 and will pay an annual dividend of $1.75...

I don't litter. You don't pay taxes. Neither of which have anything to do with with the difference between yield and total return. At this point, I can only conclude that you don't know the difference. Finito...

There's no magic there in terms of whether you do some simultaneous stock market strategy or not. When MM rates get back to 4-5%, you earn what everyone earns, 4-5%. If VZ pays a 5% dividend, it's not free money. It doesn't increase the dollar value of your position. If anything, it...

Also known as "With short puts and covered calls, most of the time you eat like a bird and sometimes you sh*t like an elephant." Yes, spreads make more sense and for those who own the underlying, collars (both are equivalent).

And yet the public is sold a bill of goods that selling covered calls (equiv to short put) is a safe strategy. Safe for the broker, not the investor.

And yet you sell covered calls which is equivalent to short puts. Unless you leverage yourself, it's the same result, good or bad. No one can jump in front of you. How fast you draw and shoot your order for execution determines what your fill price is (whatever the ask price is).

What money market accounts pay has nothing to do with covered calls. The dividend you receive comes out of the cost basis of your stock. Don't confuse yield with total return. Premium is income, dividend is not. Getting 1% at Fidelity on a 2.55% JNJ yield isn't exactly the road to...

If it were only that simple. Making money with options involves good timing and selection. If you are into equities rather than indexes, you can have catastrophes during a bull market. How about VRX losing 90% from its peak (225 points)? Too risky a stock for you? How about a Dividend...

In the narrow focus of placing your bet and going golfing for a number of years, it doesn't make much of a difference. But if you have some semblance of ability, doing better than the market either quantitatively or risk adjusted is possible.

Across the web I often see the statement that 90% of options expire worthless so you should be a seller not a buyer. These tend to be sites that are trying to sign you up ($$$) for their winning make a ton of money strategies in only 60 minutes per day :confused: Stats provided by the CBOE...

I don't think so about better than sex but it might be one of many things where it's the most fun that you can have with your clothes on! String together a lot of those mini lottery windfalls and you generate a lot of feel good "Dolphins" :D (sic) in your brain.

Selling option premium is income. Dividends are not since they are yield not total return (stock exchange reduces share price on ex-div).