Outsourcing the death of the economy!

[aradiel]

Quote from damir00:

maybe i didn't make myself clear: writing covered calls isn't "investment protection", it's the equivalent of naked selling puts.

long stock + short calls = short puts

if you wouldn't recommend naked selling of puts, then you can't recommend writing covered calls since it has exactly the same risk profile.

Hmm sorry if Im missing the point - the fact that english is not my native language sometimes make things not that easy;

Im not advocating that writing covered calls is the best investment protection, just cant see how - same risk profile or not - a covered and a naked position can be equal alternatives for someone who wants to, for whichever reason , hold an equivalent position in the underlier.

 

[aradiel]

Quote from ArchAngel:

Selling covered calls isn't investment "protection"

It depends on what was adopted as the definition of "protection", what degree of protection we are talking about and if you want to pay or earn money to have the right of this protection.

And I agree that married puts are well fit to do the job in a lot of circumstances.



By the way, Im here to learn - to be proved wrong, in other words - Im very curious to check the incoming posts from you guys.

 

[damir00]

Quote from aradiel:

just cant see how - same risk profile or not - a covered and a naked position can be equal alternatives for someone who wants to, for whichever reason , hold an equivalent position in the underlier.

if the point isn't to make money but to hold the underlying no matter how far it falls - which is a curious strategy, but hey, takes all kinds! - then writing CC may be preferrable to selling naked puts. but if you look at nothing but the account balance, at the end of the day there is no difference between the two strategies.

they are equivalent in a make money, lose money sense. google will turn up lots of educational links...

 

[NasdaqTrader]

Selling naked puts is a great strategy,but one disadvantage to it is that you don't get the dividends,if they pay it of course.

 

[aradiel]

Quote from damir00:

if the point isn't to make money but to hold the underlying no matter how far it falls - which is a curious strategy, but hey, takes all kinds! - then writing CC may be preferrable to selling naked puts. but if you look at nothing but the account balance, at the end of the day there is no difference between the two strategies.

they are equivalent in a make money, lose money sense. google will turn up lots of educational links...

I followed your advice and did some google research... I eventually got across this link:

____________________________________________________

http://www.amazon.com/exec/obidos/t..._books_2/103-5262166-6357446?v=glance&s=books

New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing
by Richard Lehman, Lawrence G. McMillan

Average Customer Review: 4.5/5.0 Based on 9 reviews
____________________________________________________

I don't know if this book is bs or not, but as you said, "hey, takes all kinds!"; I can think of more than a couple of occasions where the covered and naked positions mentioned earlier = different results.

 

[BloodTrader]

Sheesh, come on Samson. It's not about what is good for the general citizenry, it's about what is good for the oligarchy, the multinational corporations. More Americans must get used to the idea of be (low) wage slaves.

The future is here.

m

Quote from Samson77:



easy

Please explain to me what that exactly means...?

We have ALWAYS been global but we had money to buy stuff with because we had jobs, how are we going to buy stuff from our own companies when they are paying our wages to foreign employee's

Seems to me that it will be a very good thing for them as an example India's economy boomed but where is our money going to come from?

Can everyone be a daytrader .........

 

[Samson77]

Let's hope your wrong ....

This is STILL America and the individual capitalist will always rule right?

That is of course if there are any true ones left with real vision.

 

[NasdaqTrader]

I'd like to add that you have to pay margin interest on long positions held overnight,assuming you use 2 to 1 leverage when you write covered calls.I guess it wouldn't make sense to write covered calls if the interest you pay is more than the dividends,and in that case,selling naked puts would be the better choice,assuming that you wouldn't mind owning the stock at the strike price if it got put to you.Earning 20-30% a year selling out of the money puts on stocks that have little volatility is doable.

 

[BloodTrader]

Quote from Midas:


This country was built on the backs of risk taking entrepreneurs from the frontiersmen, plantation owners, ranchers, industrialist, to small business owners.

...and the labor of slaves, and the bounty of free land and resources taken from the indigenous peoples of the continent.

m

 

[Audacity17]

"and the labor of slaves, and the bounty of free land and resources taken from the indigenous peoples of the continent. "

All of which they had in South America and look how rich they are. In fact, South America has more natural resources than North America.