Friday, April 23, 2010

[TheOptionClub.com] Why not sell covered calls?

 

I am new to options but not the market and have managed my IRA for several years. I buy dividend stocks to create "cash flow" to use in retirement and when the stock apreciation lowers the dividend below my comfort level, I will sell and buy something else.
Why not sell a covered call at my sell point if I already know I will sell at that price but am happy to hold if it does not. It generates a little income while waiting. Am I missing something?
Thanks

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