covered calls
Covered calls or covered call writing is an investment strategy wherein a call option is sold while simultaneously owning the underlying security. The option buyer or holder has the right, but not the obligation, to purchase the shares from the option seller at a certain price (strike price), by a specific date (expiration date). In return for undertaking this obligation, the option seller receives a premium. This option profit is the sellers to keep whether the option buyer exercises (buys the shares) the option or not.
This strategy works best in neutral, moderately bullish (uptrending) and moderately bearish (downtrending) markets. In fact, it is considered so safe that the government allows us to utilize this strategy in self-directed IRA accounts.
It's not unusual for bloggers to share investment tips and strategies for using covered calls.
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Latest blogosphere posts tagged “covered calls”
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TradeKing’s Options Screening Tools
VIX and More —
Authority: 596
When TradeKing launched their stock and options brokerage back in December 2005, I was one of the first to sign on. The promise was an inexpensive commission structure , some innovative tools and an emphasis on integrating social media themes into the online experience. In the almost four years since it was ...3 weeks ago -
Looks like it’s getting time sell some stocks
Early Retirement Extreme —
Authority: 420
With economic data coming out that are worse than predicted as well as worse than the last report, the market mood is now exuberant to say the least. Is this just the latest run up in what will be the greatest wealth transfer of this generation (from boomers about to retire or presently being retired to their children ...4 weeks ago
