Covered Calls

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AdamA
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Covered Calls

Post by AdamA »

I am sure that this falls into the category of "tinkering," but have to ask...

Does anyone write covered calls against any of their positions when it's time to rebalance?

It seems like it if you were using ETF's it may be a reasonably safe way to generate a little extra income...then again, it may also be a way to increase expenses, and get stuck for an extra month in a position that needs rebalancing.  Just curious if anyone has any opinions.

Adam
"All men's miseries derive from not being able to sit in a quiet room alone."

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julian
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Re: Covered Calls

Post by julian »

Doesn't work. You will get called away just as u need the asset class to rise and offset the loser ie TLT inn2008
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travelingheelfan
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Re: Covered Calls

Post by travelingheelfan »

I'd stay away from covered calls.  Why limit your upside?
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