Oct 27, 2012 | Option Trading Basics, Stock Option Strategies
As safe a strategy as covered call writing is there is some risk; the risk is in purchasing the stock, not in selling the option. For this reason, some investors who sell covered calls also buy protective puts to alleviate some of the risk especially in volatile...
Oct 20, 2012 | Option Trading Basics, Options Calculations
In covered call writing, our option premiums are influenced by the volatility of the underlying security. Using the Black Scholes option pricing model, we can calculate the volatility of the underlying by entering the market prices for the options. Common sense would...
Oct 13, 2012 | Investment Basics
Mastering covered call writing has taught many of us how to self-invest. In the past, we depended on financial managers to handle our hard-earned money. In the hands of the right person this is not an inappropriate path to take for some of us. Certain investors both...
Sep 29, 2012 | Covered Call Exit Strategies
Maximizing covered call writing returns requires the use of a series of exit strategies. One of the most common mistakes covered call writers are guilty of is not managing trades during the contract cycle. I was guilty as charged when I first started using this great...
Sep 22, 2012 | Option Trading Basics
When studying option trading basics and the Greeks we learn about our exposure to risk. Those of us who study options are constantly reading and hearing that delta, one of the Greeks, is one of the most powerful influences over option value. Because of this, I thought...
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