It is NOT safe. It is a <b>little bit</b> safer than holding stock without writing those calls. It produces excellent income only when the markets are neutral or rising. It's a losing strategy when the markets are falling. There are safer strategies you can use. But if you a truly a beginner <i>and </i> you want a bullish position, writing covered calls is a good way to learn how options work. Just don't do too many at one time. Mark http://blog.mdwoptions.com/options_for_rookies/
\ Useless in this market -- the 'cushion' is nothing compared to the major moves we're seeing. Wait for a more sideways-to-slightly-bullish market before doing CCs......
with the vix so high, if you've bought stocks where you think they can't go much lower a covered call strat might collect good premiums
this should have remained a 1 post thread. His point was that you might have gotten KILLED with the 'safe' and income producing cc strategy
covered calls = selling puts. simple as that. same crowd that said long term investing was valid pimps covered calls. scum.
You are a bit harsh. Some people believe in holding for the long term. They are misguided and behind the times. But you shouldn't hate them so much. Mark