Systematic Covered Writing

 . . . more than just covered calls . . .

---

REVERSE TAX DEFERMENT STRATEGY

The 'reverse' aspect of this strategy is that the covered writer is looking for position that are going to be called (assuming the price of the stock remains above the strike price), which will create a realized capital gain.  The strategy has two purposes:

1. Reduce the expected gain on an existing position.
2. Maintain a holding in the underlying stock.

Once again ... the reader is advised to ask two questions.  Is this simple?  Can it be repeated?  With that in mind consider the thoughts contained in these examples:

Example 1    Example 2   ONXX Nov 2007

        On the other hand ... it is your money!