Most helpful critical review
4 of 5 people found the following review helpful
Scratching My Head Over the Other Reviews Here
on September 30, 2013
I bought this book hoping to glean some new insights about writing covered calls, vaguely hoping to overcome three recurrent problems with this general strategy: (1) Premiums on out-of-the-money calls tend to be small on high-quality issues, (2) issues of high quality are quite susceptible to be called away if you sell calls at strikes providing minimally acceptable premiums, and (3) if you are managing covered calls at risk for expiring in-the-money, rolling into longer-dated calls at higher strikes nearly always results in lower returns despite any hype to the contrary. For any readers with similar experience to my own, this book doesn't really address any of these problems.
What the book provides is a sketchy framework, if it can even be called a framework, for selecting covered-calls. The framework is inadequately described, to say the least. Much of the text consists of charts and other screen-dumps from websites without adequate captions. A technical indicator, apparently important to the strategy, is breezily mentioned, but instruction on its proper implementation is never provided. The author counsels that the covered call writer should focus on issues with rising stock prices. Which brings us back to the three problems mentioned above.
Someone with absolutely no idea about covered calls might learn a thing or two from this book, but if you already try to make superior returns with the strategy and wish to use it with high-quality stocks, you are probably going to be disappointed.