Covered calls are a great way to use options to generate income while trading. You are able to keep options premium against a long stock position that can help to reduce your basis in long term holdings. It also decreases the volatility of your positions as it reduces the directional exposure...
Buy a stock and sell a call option. The call is secured (covered) by the stock. This is a bullish to neutral strategy. You expect the stock price to stay the same or go up. A covered call is a conservative strategy used for generating current income and enhances dividends. ...
expectation, a trader could sell April call options to collect income with the anticipation that the stock will close below the call strike at expiration and the option will expire worthless. This strategy is considered "covered" because the 2 positions (owning the stock and selling calls) are ...
A buy-write allows you to simultaneously buy the underlying stock and sell (write) a covered call. Keep in mind: You may be subject to two commissions: one for the buy on the stock and one for the write of the call. Even basic options strategies like covered calls require education, ...
right for another investor to buy your stock at a given contracted price on or before a given contract expiration date. You earn a premium for selling this right. If you use a momentum stock with covered calls, and you sell covered calls several months out, you can earn a sizable premium...
Forlonger term investorswho would prefer to retain their shares, but want to sell calls to generate some additional income, writing those calls out of the money is the better way to go. And finally, for more experienced covered call traders who employ technical analysis as part of their strat...
the secret of selling anything to anybody is not attempting to sell just anything to just about anybody. And, in my opinion, being a good salesperson isn’t about having a good response to“sell me this pen.”(If your boss has seen the Wolf of Wall Street movie too many times, humor...
I know quite a few folks who have lost thousands of dollars in real estate using these "completely free " real estate techniques. People buy, sell and invest in real estate expecting it to make them rich overnight. Well that just isn't true!I know because I speak from first-hand experi...
Selling covered calls is a classic options strategy for investors who want steady income from their investments with some protection against risk. One drawback of this strategy is the effort and capital required to buy enough shares to cover the options you sell and then sell the options. Cover...
When to Use and When to Avoid Covered Calls The best time to sell covered calls is when the underlying security has neutral to optimistic long-term prospects, with little likelihood of either large gains or large losses. This allows thecall writer to earn a reliable profitfrom the premium. C...