Comments on: Chicken Little Running Today, -387 points http://www.callwriter.com/blog/2007/08/09/chicken-little-running-today-387-points/ Tue, 06 Jan 2009 04:40:43 +0000 http://wordpress.org/?v=2.1 By: Mitch Cohen http://www.callwriter.com/blog/2007/08/09/chicken-little-running-today-387-points/#comment-136 Mitch Cohen Mon, 08 Oct 2007 12:17:33 +0000 http://www.callwriter.com/blog/2007/08/09/chicken-little-running-today-387-points/#comment-136 Hi, What kind of yearly returns could someone possibly receive if they wrote covered calls on NYSE stocks? How much risk would you guys say is involved? I'm thinking about starting a covered call strategy in my IRA (to alleviate the taxes). Thanks Hi,

What kind of yearly returns could someone possibly receive if they wrote covered calls on NYSE stocks? How much risk would you guys say is involved? I’m thinking about starting a covered call strategy in my IRA (to alleviate the taxes).

Thanks

]]> By: John Brasher http://www.callwriter.com/blog/2007/08/09/chicken-little-running-today-387-points/#comment-138 John Brasher Mon, 08 Oct 2007 16:09:27 +0000 http://www.callwriter.com/blog/2007/08/09/chicken-little-running-today-387-points/#comment-138 Mitch, the large-cap stocks produce an excellent return, because whether they are up or down, the investor simply keeps writing them - repurchasing and rewriting them if assigned. I prefer stocks that typically carry a decent level of implied volatility (IV) and thus better assure a high level of premium month in and month out, like GM. The risk cannot be assessed without looking at the stock involved. My SuperPut strategy addresses long-term risk, because it adds a long-term protective put that covers the stock's downside risk. Mitch, the large-cap stocks produce an excellent return, because whether they are up or down, the investor simply keeps writing them - repurchasing and rewriting them if assigned. I prefer stocks that typically carry a decent level of implied volatility (IV) and thus better assure a high level of premium month in and month out, like GM. The risk cannot be assessed without looking at the stock involved. My SuperPut strategy addresses long-term risk, because it adds a long-term protective put that covers the stock’s downside risk.

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