Jun 13, 2015 | Exchange-Traded Funds, Investment Basics, Put-selling, Stock Investing, Stock Option Strategies
Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security...
Jan 17, 2015 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
For the strategies of covered call writing and selling cash-secured puts, we are selling the right, but not the obligation, to buy or sell 100 shares of the underlying security. That security can be a stock or and exchange-traded fund (ETF). In this article, I will...
Sep 20, 2014 | Exchange-Traded Funds, Stock Option Strategies
With the popularity of covered call writing and selling cash-secured puts growing in popularity, we have witnessed the creation of new exchange-traded funds based on these strategies. Over the last few years I have not been a proponent of these securities mainly...
Jul 26, 2014 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Most options traders including covered call writers are familiar with exchange-traded funds (ETFs) and many trade options on these securities. Many have also heard of, but are not as familiar with, index options. The purpose of this article is to detail the...
Jul 18, 2014 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
The initial main step for covered call writers is to select the best underlying security. This choice will vary from investor to investor based on goals and risk tolerance. Some of our members prefer exchange-traded funds (ETFs), a strategy I use in my mother’s...
May 17, 2014 | Exchange-Traded Funds, Investment Basics, Option Trading Basics, Stock Option Strategies
Covered call writing is a stock option strategy with primary goals of income generation and capital preservation. Most of us are conservative investors who use the power of education to master an investment strategy better than most everyone else using the same...
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