Quote:
Originally Posted by Republicaninmass
Pardon the naivety, however what if you sell calls, and since stocks only go up, you stock gets called away?
|
you can roll up the calls, yeah in theory if the market goes up 30 percent you will make 20 percent etc, but assuming the market doesnt go up forever you will eventually catch up to the market with your calls and be always outperforming the market...yeah if market loses 30 percent you will still lose 20 percent etc so you will also get crushed but you will still be out performing the market..which very few hedge funds do ..