The problem with the book is...
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The strategy of covered calls is a popular strategy which seminar companies (including the authors' company Compound Stock Earnings) charge thousands teaching. However, this strategy only works in a stable or rising market. In a declining market your overall account will go down and it is possible that it will take a significant amount of time from collecting premium income to restore your account. I would advise people to read the posts at the Compound Stock Earnings Yahoo discussion board which consist of people who have used the strategy and you can make your own mind up whether the strategy achieves the results they claim. The strategy may have a place in a portfolio but the authors need to make clear that investors expose themselves to significant risk in a declining market. The sale of the call option is only a partial hedge. For more technical readers it should be noted that this strategy has the same risk profile as a naked put option which is a risky strategy again due to the risk in a declining market. In my opinion the book does not provide a balanced view but only focuses on the positives to entice customers to invest in the authors' additional (and more expensive) educational products.
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