Comments on: Covered Calls – Too Risky? http://www.thedividendguyblog.com/covered-calls-too-risky/ One Guy's Journey to Passive Income Through Dividend Investing Sun, 14 Mar 2010 11:17:23 -0600 http://wordpress.org/?v=2.9.2 hourly 1 By: Tim http://www.thedividendguyblog.com/covered-calls-too-risky/comment-page-1/#comment-4885 Tim Fri, 22 Dec 2006 22:23:57 +0000 http://www.thedividendguyblog.com/2006/11/27/covered-calls-too-risky/#comment-4885 I have recently started writing covered calls in a small IRA and blogging about it. I am finding that figuring in time preimum, spreads and commissions make it a challenge to find trades with acceptable returns. I do love the challenge and I am having a lot of fun with it. I have recently started writing covered calls in a small IRA and blogging about it. I am finding that figuring in time preimum, spreads and commissions make it a challenge to find trades with acceptable returns. I do love the challenge and I am having a lot of fun with it.

]]> By: Pierres Service » Blog Archive » Covered Calls - Too Risky? http://www.thedividendguyblog.com/covered-calls-too-risky/comment-page-1/#comment-4316 Pierres Service » Blog Archive » Covered Calls - Too Risky? Wed, 29 Nov 2006 08:07:58 +0000 http://www.thedividendguyblog.com/2006/11/27/covered-calls-too-risky/#comment-4316 [...] Covered Calls - Too Risky? An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a …Read more: here [...] [...] Covered Calls – Too Risky? An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a …Read more: here [...]

]]> By: Rich Slick http://www.thedividendguyblog.com/covered-calls-too-risky/comment-page-1/#comment-4305 Rich Slick Tue, 28 Nov 2006 21:38:42 +0000 http://www.thedividendguyblog.com/2006/11/27/covered-calls-too-risky/#comment-4305 I've been doing this for years and I've been blogging about it for a few months now. The major risk, in my opinion, is if there is a major downturn in a stock and you can't quickly liquidate your position because of the options exposure. If you're a long term investor then this particular bit of risk is of little consequence. By the way....you've hit on my favorite "trifecta" for stocks. 1. Earning money via dividends. 2. Earning money via covered calls. 3. Earning money via stock appreciation. I’ve been doing this for years and I’ve been blogging about it for a few months now. The major risk, in my opinion, is if there is a major downturn in a stock and you can’t quickly liquidate your position because of the options exposure. If you’re a long term investor then this particular bit of risk is of little consequence.

By the way….you’ve hit on my favorite “trifecta” for stocks.
1. Earning money via dividends.
2. Earning money via covered calls.
3. Earning money via stock appreciation.

]]> By: Matt http://www.thedividendguyblog.com/covered-calls-too-risky/comment-page-1/#comment-4302 Matt Tue, 28 Nov 2006 18:45:01 +0000 http://www.thedividendguyblog.com/2006/11/27/covered-calls-too-risky/#comment-4302 Watch out for the effect of capital gains taxes when options get exercised. Watch out for the effect of capital gains taxes when options get exercised.

]]> By: gokou3 http://www.thedividendguyblog.com/covered-calls-too-risky/comment-page-1/#comment-4281 gokou3 Tue, 28 Nov 2006 06:46:27 +0000 http://www.thedividendguyblog.com/2006/11/27/covered-calls-too-risky/#comment-4281 The buy-write strategy is actually safer than a straight long of the stock if one is loss-adverse; you sacrifice a possible huge gain of the underlying in exchange for less painful loss in the event of a downturn. Whether it's worth it depends on how much premium one can collect for the call. The buy-write strategy is actually safer than a straight long of the stock if one is loss-adverse; you sacrifice a possible huge gain of the underlying in exchange for less painful loss in the event of a downturn. Whether it’s worth it depends on how much premium one can collect for the call.

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