Comments on: Rahemtulla: “Secretive ‘Price-Fixing’ Ring Snatches Cash”

By: Marty

Marty — Sat, 28 Jun 2008 16:12:12 +0000

Funny, Karim says in this ad that he has lost money in options and now figured out to sell covered calls – and yet he also markets at least two options trading newsletters The 400 Report and another I can’t recall. So is he saying his other recommendatinos lose money and this is the only one that makes money? I smell a big fat rat, and probably fat off newletter sales vs. trading results.

By: DAVE

DAVE — Sat, 19 Apr 2008 07:27:40 +0000

Another goodie is if the stock dips, you can buy back the call you sold for pennies and sell another one at the lower strike price! You can also buy a protective put many months out as cheap insurance (it’s cheap per month)

By: StockGumshoe

StockGumshoe — Mon, 10 Mar 2008 13:51:03 +0000

Thanks Big Mo — I can only “block” by URL and they seem to keep changing addresses, but I’ll try to keep up.

By: StockGumshoe

StockGumshoe — Mon, 10 Mar 2008 03:24:13 +0000

Thanks trader9 — you’re right, of course. I meant to note that it would generate less income per contract, but yes, you would then have the opportunity (assuming you choose wisely and have some good fortune, as Myron smartly noted) you could potentially sell calls on the same holding as often as 6 or so times a year (depending on the expirations available for that particular option chain).

By: trader9

trader9 — Mon, 10 Mar 2008 01:54:18 +0000

Just a slight correction. You stated:

“Being fairly conservative and only selling near-term call options (that expire in the next few months) can help protect you a little bit more, but it also generates less income.”

Selling near-term call options actually generates more, not less, income (neglecting commissions). For example, selling a 1 month option 12 times yearly results in more income than selling a 3 month option 4 times yearly because of the more rapid decay in premium as the option approaches expiration.