Fred Thomson

Covered Calls: More on Why They're A Losing Investment Strategy

This is a great article. Covered Calls has it's known disadvantages which the author points out very well. But a well disciplined covered call trading strategy can be very profitable and will beat stocks in all BUT the strongest bull markets.

Trading costs are another possible disadvantage, but again this can be gotten around by not paying rediculous amount for trades - try Zecco for goodness sake. I've used them over a year now and they don't have great customer service - but it's is way cheaper.

Also, any covered call trader will need some sort of tool to help him make decisions on when to manipulate his positions. A great tool can be downloaded at coveredcallcalculator....