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Dear Comrades:
Covered call writing is a naked put selling. This is a greatest, fool
prove, easiest lazy man way to make regular and unlimited income. "Money
for nothing and the chicks for free..." What could go wrong?
Dear friend of my did it all the way to the top in 1987. Then market dip
slightly. Not to worry, you just cut your small occasional losses and
keep you big and regular gains. OOPS... Can not get to the floor. Order
finally placed, and then sometime executed. Several hundred thousands
loss. Exceed his total capital more then 3 times. Poor broker fly around
the country trying to collect at list some of the losses he need to
cover, because many traders are in the same position.
I do not need to talk about (his name slipped from what is left from my
mind). This gentlemen lost entire fund recently.
Market pays for the risk to the "winner" from the "looser" after taking
a big "cut" for themselves.
Please, comrade, read at least McMillan on Options, and think it
through, please.
Comrade Alex.
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