Comments on: Covered Call Options http://www.investingintelligently.com/2006/04/23/covered-call-options/ Not just another (Canadian) financial blog Fri, 21 Nov 2008 13:08:48 +0000 http://wordpress.org/?v=abc By: Investing Intelligently » Blog Archive » Split Shares: The Downside http://www.investingintelligently.com/2006/04/23/covered-call-options/#comment-332 Investing Intelligently » Blog Archive » Split Shares: The Downside Mon, 01 May 2006 05:05:58 +0000 http://www.investingintelligently.com/2006/04/22/covered-call-options/#comment-332 [...] I discussed covered call options previously. The split trust my parents are invested in (the Top 10 Split Trust) which, according to the prospectus, will “from time to time, write covered call options in respect to some or all of the securities in the Financial Portfolio [which consist of 6 banks and 4 insurance companies].” This, they say, is done in order to “generate additional returns above the dividend income earned on the Financial Portfolio.” [...] [...] I discussed covered call options previously. The split trust my parents are invested in (the Top 10 Split Trust) which, according to the prospectus, will “from time to time, write covered call options in respect to some or all of the securities in the Financial Portfolio [which consist of 6 banks and 4 insurance companies].” This, they say, is done in order to “generate additional returns above the dividend income earned on the Financial Portfolio.” [...]

]]> By: Larry Stay http://www.investingintelligently.com/2006/04/23/covered-call-options/#comment-301 Larry Stay Mon, 24 Apr 2006 23:04:14 +0000 http://www.investingintelligently.com/2006/04/22/covered-call-options/#comment-301 This was a good post with informative links. Thank you. One problem with covered calls is that you might lose a stock you like. Even if you write a call on a stock you decide to sell, if that stock suddenly starts going up, you might decide to postpone the sale or let your profits run. With the covered call, you would lose the stock and be limited to your option premium. I wrote a series on options on my blog at www.growyourfunds.com. This was a good post with informative links. Thank you.

One problem with covered calls is that you might lose a stock you like. Even if you write a call on a stock you decide to sell, if that stock suddenly starts going up, you might decide to postpone the sale or let your profits run. With the covered call, you would lose the stock and be limited to your option premium.

I wrote a series on options on my blog at http://www.growyourfunds.com.

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