A simple rule of investing as we all know "greater the return the greater the risk"
So it makes sense that if you are going to make a greater return by writing calls over stock you own there must be an increase in risk somewhere.
I would have to agree with with Crashy though that the situation that Glen has outlined would be rare.
Just as the odds work in favour of a casino there are also times when they will get hit by a high roller who has a big win but it does not happen often.
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