I read, with interest, your position on covered calls in the archives on your TSINetwork.ca website. I do have one very naive question, however. (I’m green at this, so that’s why I subscribed to your very sound advice column!) In any case, if one is holding Research in Motion stock at this time, would a covered call be a bad move—or should I just sell?

Covered call writing is where you sell a call option against a stock you currently own. You receive cash for selling the call, but you’re obligated to sell the stock at a fixed price (the strike price) if the holder of the call exercises the… Read More