Riskless(?) Covered Call????

Yeah it is not a "Covered Call" trade by any definition I have ever heard.

But of course calling it that sucks in the unaware. Definitely sounds like some form of high-leverage collar.

And since we all know that risk and reward must balance out, there is plenty of risk there or every hedge fund and mom and pop would be slamming that trade till the cows come home. If it is so great and golden, why isn't he vewy vewy quiet about it and make millions hisself...

Good luck to all. :cool:
 
Quote from wayneL:

Hi,

I'm not a particular fan of covered calls, but was pointed to this blog post: http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/

It's John Brasher's blog and of course he is trying to pull in some seminar business, but the concept intrigued me. I would love to have a look at this strategy to see what he is on about... haven't been able to bust it from the "clues".

Anyway here's the post - Any ideas what it is?:
More...
Impossible to have risk go from '5% to zero' using covered calls, unless it's insider trading or there is something new in options theory that has never been discovered before, lol.
db
 
I think between here and the comments on the blog that the strategy exposed and thoroughly trashed.

Time to move on.
 
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