clarkkent, page-43

"4. After entering a trade which has broken out successfully, i.e., has risen quickly, place a written call option deep in the money. This protects against a sudden reversal and locks in a double profit - the rise in the stock and the time premium of the option."



Another myth.
The ASX Buy-Write Index has woefully underperformed the ASX200 Accumulation Index since it's inception.

Writing call options is just another hedge.
It reduces risk and it ultimately reduces returns.

As I said earlier, the market rewards risks.
It's all about risk-reward.
Fundamental.


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