tag:blogger.com,1999:blog-816559531110064247.post1993846657804693137..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: The risks of buy-writeCam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-816559531110064247.post-37027685046312873722013-12-26T00:54:15.089-08:002013-12-26T00:54:15.089-08:00Hi, this is my first visit to your Stock Option S...Hi, this is my first visit to your Stock Option Strategies blog posts and you have really gained the appreciation for such a brilliant write-up. I want to know more about your article & blog posts. Thanks & I will wait for your reply.Day Trading Strategieshttps://nextoptions.com/noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-45502952412567913152013-05-21T21:49:11.027-07:002013-05-21T21:49:11.027-07:00Am currently learning about trading with Australia...Am currently learning about trading with Australian Investment Education, the covered call strategy they teach is quite straightforward. I think as any <a href="http://australianinvestmenteducation.com.au/articles/investment-strategies-for-buying-on-the-dip/" rel="nofollow">investment strategies</a> that you use, you need to asses your risk levels, and if it’s fit for you. Helps when someone actually talks to you and give you sound advice about your needs instead of their personal interest.Peter Evansonhttps://www.blogger.com/profile/11267937715761907181noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-11361207724276537382011-04-07T05:56:02.367-07:002011-04-07T05:56:02.367-07:00I stand by my comments. Too many times, buy-write ...I stand by my comments. Too many times, buy-write has been sold as an income enhancing strategy, which is inappropriat for that purpose.<br /><br />It is a risk modification strategy, with subtleties and nuances that are not perceived by most of the investing public.Cam Hui, CFAhttps://www.blogger.com/profile/09672203690656029787noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-9762010589316412082011-04-06T07:07:37.030-07:002011-04-06T07:07:37.030-07:00I agree with Mark's comment.
Your perception...I agree with Mark's comment. <br />Your perception of buy-writes is misguided. Buy-writes (aka covered calls) are not solely a yield-enhancing investment. I, for one, invest with them as a total-return strategy. <br /><br />Your characterization in your newsletter article that buy-writes are an "exotic option strategy" is hyperbole. Rather, covered calls are more like a simple stock hedging strategy. <br /><br />What I love about covered calls is that they offer the potential for slightly better total returns than a buy-and-hold stocks portfolio and with about 30% less risk.<br /><br />Regards and Best Wishes,<br />JeffJEFF PARTLOW: THE COVERED CALLS ADVISORhttps://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-61030011207621140712011-04-05T20:06:34.605-07:002011-04-05T20:06:34.605-07:00Buy-write is not a suitable strategy for those see...Buy-write is not a suitable strategy for those seeking increasing yield.<br /><br />Thus, it's inappropriate to write about the buy-write strategy as a high risk, flawed methodology.<br /><br />Used correctly, it is one method that PEOPLE WHO WANT TO OWN STOCKS can adopt to provide a small amount of downside protection in the form of an upfront cash premium - in exchange for accepting a limit on possible profits.<br /><br />This is the method that produces slightly better results with reduced volatility. And for the right (bullish) investor, there is nothing wrong with it.<br /><br />More conservative investors may prefer strategies with less risk, but there are plenty of people who insist on holding stocks. For them, the buy-write (covered call writing) is appropriate.<br /><br />This method is not for people seeking yield. It is for equity holders.<br /><br />Thanks for the fine blog.<br /><br />RegardsMark Wolfingerhttps://www.blogger.com/profile/12697921015971018067noreply@blogger.com