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Any method that promises extraordinary monthly income is over hyped.
Covered call writing is good if the stock goes up slowly or stays steady. Then you get some extra monthly income.
But, if there is a big move up, the stock gets called away and you don't get the whole gain. If the stock bombs, you keep the small option premium, but you take the whole loss on the stock.

2007-10-09 08:16:55 · answer #1 · answered by Ted 7 · 1 0

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