Thursday, November 27, 2008

I'm a 'Covered Calls Investor'

Although covered calls is neither a complicated nor risky strategy, most of the general investing public is clueless when it comes to understanding covered calls. In fact, whenever I have the opportunity to speak with someone about my use of covered calls, I often receive one of two reactions; either a quizzical expression or simply a blank stare -- perhaps you've received similar reactions?

Regardless of the sad state of investment intelligence evident in most people, I continue to identify myself to them as a 'covered calls investor'. Yes, 'covered calls investor' is the term that most clearly reflects how I perceive my investing persona since: (1) About 90% of my money is invested in covered calls; (2) I remain fully invested in covered calls at all times -- that is, I don't believe in market timing and putting money into and pulling it out of the market at various times; and (3) I try to maintain the mentality of a longer-term 'investor' rather than a short-term 'trader'-- this is true even though some might consider me a 'trader' since I prefer to almost exclusively write near-month covered calls.

So what term would you choose to use for yourself in relation to your covered calls persona? Some possibilities are:
- Covered Calls Investor -- if you want to sound more solid and conservative
- Covered Calls Trader -- if you want to sound like a financial aficionado
- Covered Calls Speculator -- if you want to sound like a wheeler-dealer
- Covered Calls Hedging Specialist -- if you want to sound like a Wall Street insider
- Covered Calls Derivatives Specialist -- if you want to sound wise but mysterious

Isn't it nice that there are so many possibilities here? It's great that our strategy can encompass such a variety of descriptive terms.
And I'm definitely not implying that 'covered calls investor' is the best term; it is just the one that best describes my investing style and personality.

In addition to a 'covered calls investor', I also think of myself as a 'covered calls advisor' as indicated by the name of this blog. In that regard, I'm interested in freely and openly sharing my thoughts and ideas on covered calls with you at any time. I recognize that the term 'advisor' might seem a tad presumptuous since it implies a certain degree of wisdom (and it takes time to truly earn that level of trust). It is my earnest hope that as time progresses you will conclude that the term 'advisor' is a valid moniker.

Regards and Godspeed to All,

Jeff

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