Category: COVERED CALLS

Covered Call Calculator

A Good Covered Call Calculator Can Make All the Difference The best covered call calculator will be one that allows you to make informed decisions about your intended positions. It will also enable you to assess the outcomes if you have to roll your positions when threatened. It should also be able to take into […]

Covered Put

An Analysis of the Covered Put Strategy There is a general belief among stock traders that implementing the covered put strategy implies unlimited risk. Whether this belief is true or false we will soon discover. One thing is certain however – this perception prevents many traders from implementing this strategy. Consequently, they lose many profitable […]

Poor Man’s Covered Call

What on Earth is the Poor Man’s Covered Call? The poor man’s covered call is a variation of the traditional covered call options strategy, only instead of purchasing the underlying stock as the covering asset, you buy long dated call options instead. Long dated call options are often referred to as LEAPS options. These are […]

Covered Call Picks

The Best Approach For Your Covered Call Picks Deciding how to select your covered call picks for the month should not be a difficult process. All you need to do, is bear in mind that with any covered call trade, there are three possible outcomes. Each of these vary in profitablity, so your best notion […]

Covered Call Write

How and When To Do a Covered Call Write A covered call write is the art of buying a financial instrument such as a stock or future and then selling a call option over it. But how you will structure the trade should be heavily influenced by where you expect the underlying to go by […]

Trading Covered Calls

Trading Covered Calls During a Financial Meltdown Trading covered calls is considered to be one of the safest option trading strategies, but it does have its risks. If you buy some shares with the intention of selling call options at exercise prices above your share purchase price, there is always the chance that the stock […]

Understanding Covered Calls

Why Understanding Covered Calls is Essential to Success Understanding covered calls and the alternative ways you can use them, is essential if you wish to make consistent profits from this popular option trading strategy. For example, you need to have some idea about where the current price of the underlying financial instrument is, both within […]

Write Covered Calls

How to Write Covered Calls – An Aggressive Strategy When we write covered calls one way of doing it is to sell out-of-the-money (OTM) call options over purchased stocks or futures. The normal manner in which this is done, is to own a specific number of shares equivalent to the number of option contracts you […]

Leaps Covered Calls

LEAPS Covered Calls Option Strategy Leaps Covered Calls are about purchasing a LEAP option as the long position instead of buying the underlying shares themselves. It is a very appealing alternative to the traditional covered call because the options cost much less than the shares themselves. LEAP options are generally option contracts whose expiration date […]

AutoTrade Covered Calls

Easy Ways to AutoTrade Covered Calls To autotrade covered calls you need an arrangement with a broker that specializes in this type of service. There are some good ones around while others are pretty average. The best ones make everything easy for you while also assuring security against misappropriation of your funds. The idea behind […]

Covered Call Strategies

Covered Call Strategies for All Market Conditions Covered call strategies are popular with options sellers due to their capacity to generate regular income over time. In markets that rise or trade sideways, the call option premium supplies the income, and in falling markets, this same premium offsets the losses. Investors have used covered calls for […]

Covered Call Writing

Covered Call Writing – A Cheaper Safer Way to Do It Covered Call Writing is regarded as one of the safest option trading strategies. The way it is normally presented is, that you purchase the underlying shares and then sell call options on them. You can sell them out-of-the-money, at-the-money or even in-the-money, each with […]

Covered Call Investing

Consider Covered Call Investing! Why Limit Your Stock Holdings Income to Dividends? Covered Call Investing is a term that we should distinguish from ‘covered call trading’. The difference between ‘investing’ and ‘trading’ is that traders only plan to buy and hold for the short term with a view to quick turnover of stock and hopefully, […]

Covered Calls and Naked Puts

Double Discount Your Stock Purchases with Covered Calls and Naked Puts Some have asked whether a covered calls and naked puts combination is an option trading strategy worth considering. The best way to answer that is, that it depends how you choose to do it. There is a profitable, low risk way which we have […]

Covered Call Options

Covered Call Options – Using Margin Loans Covered Call Options offer potential investors a low risk way of option trading in such a way that, if done correctly, can easily provide a regular income stream for the rest of your life. Self education is freedom! But did you know that if the funds that you […]

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