Active investment management’s weekly magazine for fee-based advisors

Larry McMillan

Professional trader Lawrence G. McMillan is perhaps best known as the author of “Options as a Strategic Investment,” the best-selling work on stock and index options strategies, which has sold over 350,000 copies. An active trader of his own account, he also manages option-oriented accounts for clients. As president of McMillan Analysis Corporation, he edits and does research for the firm’s newsletter publications.

The pros and cons of writing covered calls

Writing covered calls is not one of our normally recommended strategies. We prefer ratio writing (or the equivalent) since it is a more neutral strategy. However, writing covered calls is a strategy practiced by many option investors and therefore is a...