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Covered Calls

Posted: Sun Feb 06, 2011 12:22 pm
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

Re: Covered Calls

Posted: Sun Feb 13, 2011 11:38 pm
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

Re: Covered Calls

Posted: Mon Feb 21, 2011 8:46 am
by travelingheelfan
I'd stay away from covered calls.  Why limit your upside?