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Introduction To Covered Call Writing Being a member of an investment club is fun. You have an opportunity to expand your investing knowledge, gain experience managing investment dollars, and earn some money. Traditionally, most successful investment clubs adopted a buy-and-hold investment philosophy and carefully chose stocks to buy. The objective ... Mark Wolfinger 1 message
Covered Call Writing: A Real World Example If your club has given some thought to using options, but has not yet taken the plunge, this article may provide an impetus to begin. In my experience, the largest hurdle for investors to overcome when they consider writing covered call options for the first ... Mark Wolfinger 1 message
Questions Mark, Just recently started trading options and certain aspects seem to good to be true. After looking over theta curves to decide which options pay me the most with the least risk I have concluded that 6 week covered calls appear to be the best. ... Mark Wolfinger 1 message
Acquisition of MGM With the recent completion of the acquisition of MGM by SONY, COMCAST and the other partners what happens now for current shareholders of MGM? 1. Will MGM shares stop being traded on the open markets? 2. Do current MGM shareholders receive shares in any of ... Mark Wolfinger 1 message
Covered Call Questions Hello Sam, Your questions are excellent, but as far as I know, there are no studies to provide the answers you seek. Nevertheless,,, 1a) The major benefit of covered call writing is risk reduction - and selling longer-term options provides more protection against loss because ... Mark Wolfinger 1 message
Covered Call: What to do when stock falls rapidly Hello. 1) If you have a covered call position and the stock declines rapidly, then you have 2 choices. The first is to do nothing and hope the stock recovers. That is not usually a satisfactory choice. It is better to take action in an ... Mark Wolfinger 1 message
Buying an Option Hello Nicolas, Your impression is correct. If you own a call option and then sell it, the position is closed. You are under absolutely no obligations. Although you did not ask, if you sell a call option, and later buy it back, then any obligation ... Mark Wolfinger 1 message
SFO article Hi Jay (call me Mark) Glad to hear you found the article helpful. Thank you. 1)Why 2 x 5? Good question. To a point, choosing the ratio was close to random - but - because my primary purpose was to sell puts I had to ... Mark Wolfinger 1 message
On Trend Following Hello Juan, I'm pleased to hear you are enjoying the book. First of all, I congratulate you on your acceptance of the sad fact that it's extremely difficult to predict the market. I readily admit that I am also unable to do it. You are ... Mark Wolfinger 1 message
Covered Call Writing. A Real World Example Covered Call Writing A Real World Example If your club has given some thought to using options, but has not yet taken the plunge, this article may provide an impetus to begin. We'll take a look at covered call writing, a conservative strategy - one ... Mark Wolfinger 1 message
Covered Calls on ETFs After reading your book ( Create Your Own Hedge Fund ), which I enjoyed and found very instructive a couple of questions came to mind on the subject of writing covered calls for ETFs: - many ETFs have options with very low open interest. Only ... Mark D. Wolfinger 1 message
Starting a club Hi, I hope you are all doing well. I am writing to ask for a little help. I have some friends and we all want to kick in and start an investors club. I have no idea what legalities are involved. Do I need to ... Mark D. Wolfinger 1 message
Repairing a Covered Call Mark, First I'd like to thank you for this great column. A couple of questions regarding this: At what point (or % decline) would you start buying back your calls if the stock was dropping? Is there such an order we can place that will ... Mark D. Wolfinger 1 message
Stockbrokers and Options Mark: Great job explaining options. I think a few things need to be addressed re this subject: The majority of stockbrokers, yes STOCKBROKERS either do not understand covered call writing or are jaded by option buying to begin with. As a result, they tell their ... Mark D. Wolfinger 1 message
Gaps and CEOs Mark I've been 80% successful in writing put options even thought I will limit it in the future because the math does not support it very well. My question is on setting exit points vs. gaps. With the poor quality of CEOs and a casino ... Mark D. Wolfinger 1 message