Talk:Covered call

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This page definitely did need cleanup. If anybody can make better graphs, please do. The references, examples etc. at the bottom are probably all part of the old sales job. Can anybody figure out which are legit? Thanks

Smallbones 14:09, 12 February 2006 (UTC)

Much of this article consists of unsourced POV on "why covered call is a bad strategy". Looks unencyclopedic to me. 69.63.62.226 00:04, 27 May 2006 (UTC)

See the Fisher Black article cited.

See also James W. Yates, Jr. and Robert W. Kopprasch, Jr. "Writing Covered Call Options: Profits and Risks," Journal of Portfolio Management 7 (Fall 1980)

and

Frank K. Reilly and Keith C. Brown, Investment Analysis and Portfolio Management, 7th edition, Thompson Southwestern, 2003, pp. 994-5. (This is the main investment text for the CFA exam)

e.g. "To be profitable, the covered call strategy requires that the investor guess correctly that share values will remain in a reasonably narrow band around their present levels." p. 995

I do not think that "covered call is a bad strategy" but it is often oversold by disreputable brokers looking for a quick commission. Smallbones