Explore Your Options by Tom Gentile
COVERED CALL STRATEGIES
With the market at yearly lows and the volatility of most options at yearly highs, I think covered calls would make a great strategy. I know you donít like to do them
because of the high risk, but with stocks down some 90% from their 2000 highs, the risks are definitely less than before. What do you think?ó Rick F.
I canít disagree with you. Hindsight tells us any bullish strategy now is going to have less risk than it did two years ago. First, Iíll describe covered calls for the folks out there who donít know what they are. Then Iíll take a case study and look at it, along with an alternative.