4 ms·
Selling covered calls is a widely used strategy, especially when the underlying doesn't give dividends. There's nothing wrong with it. As for the tail risk, tha
by zelly 6y ago
Selling covered calls is a widely used strategy, especially when the underlying doesn't give dividends. There's nothing wrong with it. As for the tail risk, that's what buying options is for. Look at the rest of the options chain and use your imagination.
- sombremesa 6y agoThat's true — there are ways to cap the loss. I haven't played around with this market enough to have good intuition about that sort of thing, but maybe I'll use the simulator in the ToS platform to see how I'd do.