Oct 12, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writing can be used in conjunction with other strategies such as portfolio overwriting and dividend capture strategies. I have highlighted many of these covered call-related strategies in my books and DVDs. One of the strategies that has captured the...
Sep 28, 2013 | Investment Basics, Stock Investing, Stock Trading & Taxes
It’s 4 PM EST and the bell rings on the New York Stock Exchange marking the end of the trading day. As we watch CNBC, Bloomberg or Fox Business News we see the tickers till scrolling at the bottom of our TV screens! What’s up with that? The New York Stock Exchange and...
Sep 14, 2013 | Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Covered call writing, like most investment strategies, has a certain risk/reward profile relating to potential profits and losses. A profit and loss graph is a graphical representation of the potential outcomes of this or other strategies. Let’s first have a...
Aug 17, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
I’ve been writing covered calls since the 1990s. None of my friends or relatives ever heard of this strategy and no one I knew was using it. Back then, there were very few books on the subject and average retail investors had little or no interest in learning...
Aug 10, 2013 | Fundamental Analysis, Investment Basics, Stock Investing
Fundamental analysis is our first step in evaluating securities for use in the covered call writing strategy. It is a method of evaluating a company’s stock by examining its financial statements, including earnings and sales. The 3 major financial statements are...
Jul 27, 2013 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writers are average retail investors looking to generate monthly cash flow in small but consistent increments and then compounding those profits. In time, it could lead to financial independence. Other investors look to make a lot of money in a short time...