why do people recommend covered calls.

Quote from nazzdack:

1) Me too.
2) With a retail-oriented brokerage/investment firm, not a professional trading firm, naked put-writing is more likely to be seen as unsuitable and get the firm into trouble if the client can portay himself as a "victim" compared to covered-call writing. I will leave it at that.
3) Did you dress too "casual" on a Casual Friday?.....flip-flops and a dago-t? :cool:
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There is no "getting into trouble" it can easily be proved they are equivilants again NONE of that has to do with litigation. You're interpretation on who is a greater victim has no bearing on the law.
 
Quote from noob_trad3r:

Well really why buy the stock and then write calls, two transactions

when just selling the puts and having the cash put away only uses 1 transaction and is really the same thing as a covered call.
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Because it is less risky and that even if the stock does not reach the strike price and the options buyer does not exercise the option, the premium is still earned. The investor's stock holdings are earning money even when the price is stable or decreasing, so long as there are options buyers who wish to purchase options on the stock.
 
Quote from TraderTactics:

Because it is less risky and that even if the stock does not reach the strike price and the options buyer does not exercise the option, the premium is still earned. The investor's stock holdings are earning money even when the price is stable or decreasing, so long as there are options buyers who wish to purchase options on the stock.
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back to school for you because you know not what you are talking about.
 
Quote from noob_trad3r:

Well really why buy the stock and then write calls, two transactions

when just selling the puts and having the cash put away only uses 1 transaction and is really the same thing as a covered call.
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because they like to increase paying commissions and paying the bid/ask spread.
 
Quote from noob_trad3r:

Well really why buy the stock and then write calls, two transactions

when just selling the puts and having the cash put away only uses 1 transaction and is really the same thing as a covered call.
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Because you keep getting dividends, which you can spend, and your position doesn't go down as much when the market tanks.
 
Quote from crgarcia:

Because you keep getting dividends, which you can spend, and your position doesn't go down as much when the market tanks.
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another option school dropout.
 
Quote from traderlux:

http://74.125.95.132/search?q=cache...ed+call+vs+short+put&cd=4&hl=en&ct=clnk&gl=us

Covered call vs. naked put dilemma

The real difference between the covered calls and the naked puts is the different risk-management style. Specifically we must consider the assignment (including early assignment) management and managing the gap-down risk.
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Oh pulllease! The author of that drivel is the type who when you ask for the time, he tries to teach you how to build a watch.
 
Quote from crgarcia:

Because you keep getting dividends, which you can spend, and your position doesn't go down as much when the market tanks.
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3100+ posts and you're still a moron. But that won't keep you from voicing your (wrong) opinions.
 
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