Category: COVERED CALLS

Selling Covered Calls

Selling Covered Calls – in a Bear Market You would normally think of selling covered calls as something you would be inclined to do in a bull market. You look for a stock that is on the rise, or one that you expect to at least stay in a tight trading range in the short […]

Writing Covered Calls

Writing Covered Calls – Renting Out Shares for Profit So many people own popular stocks but fail to realize the potential earning capacity, beyond dividends, of the stocks they already own. Writing covered calls is a way to make additional income from some shares. If you combine this with the leverage of margin lending, you […]

What is a Covered Call

What is a Covered Call and Why are They So Popular? What is a Covered Call, you ask? It is something that turns you into someone who instead of just owning shares, also effectively rents them out in much the same way that a real estate investor does. The advantage with ‘renting shares’ is that […]

Covered Call Examples

The following are a comparison of various covered call examples and related strategies, based on the table below. They are actual historical figures taken from the OptionsXpress free covered call screener. EXAMPLE STOCK STOCK PRICE OPTION PRICE STRIKE PRICE RETURN IF NOT CALLED RETURN IF CALLED 1 – ABC 25 2.5 25 10.00% 10.00% 2 […]

Covered Call Strategy

Covered Call Strategy – For the Stock Owner Who Wants More Than Dividends To begin with, you need to decide what type of covered call strategy best fits your personal risk profile. Is your focus simply earning extra income on stocks you already own, or protecting the value of your shares by writing covered calls? […]

Covered Call Steps

Covered Call Steps For Success Covered Calls are a conservative income strategy and as such, provide limited protection against a fall in the underlying share price. Here are some covered call steps to follow: 1. Look for either a range bound market or a bullish trending market where you anticipate a steady increase in the […]

Covered Call Writing Strategy

Covered Call Writing Strategy For Compounding Monthly Income You may have heard that the best covered call writing strategy is ideally suited to stocks which have good fundamentals and are on the rise. Let’s assume you have adopted a strategy to write “out of the money” call options immediately after purchasing multiples of 100 of […]

Covered Call Screener

What Should You Expect in a Covered Call Screener? A good Covered Call Screener can make all the difference. If you’re a serious covered call trader then it’s important you invest in the right tools in order to maximise your profits. All professionals have tools to make their job easier, save time and make better […]

Renting Shares

Stock Market – “Renting” Shares For Income When we think of investing, there are two major areas we are familiar with in which to achieve capital growth and ultimate wealth creation. REAL ESTATE and the STOCK MARKET Most people feel more safe when Real Estate Investing, even though you can begin Investing in Shares with […]

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