He's right about selling medium term deep in the money covered calls to lock in gains.The average folks don't know what's going to happen after earnings are reported.I'm always of the mind that there's people who have better information and if a stock rally's into earnings the report will be good, and if it doesn#$%$ not going to be. Today didn't bode well for being long going into earnings without the safety of selling calls to protect your gains, in my opinion.GLTA
If someone suggests to Hold a stock and pocket $70 to $120 tax deferred cash for 6 to18 months: is that person smart or blowing smoke? Some think this means the stock will fall..it doesn't! It is merely pre-pocketing profits while giving you a HEDGE...simple concept
If this same person said the same thing with another stock that pocketed you $225 saving a shareholder from loosing principle when the stock plunged from $600 to present price; is that person smart or just using common sense!
bigleft-You're on the beam.I think a lot of folks reading your posts about this topic think you have an agenda.But wrong they are....you're giving very helpful advice.By the way,what do you think will happen after earnings are reported?