Jun 20, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Covered call writers generate cash flow by selling call options associated with a stock or exchange-traded fund. Our goals are to generate the highest possible returns with low-risk trades and that fit our requirement for capital preservation. The three required...
Nov 9, 2013 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
Our covered call writing strategy involves both buying and selling options. Mastering our options trade executions can bring our profit level to even higher levels. We know that a general rule is that we buy at the “bid” (the lower figure) and sell at the...
Aug 24, 2013 | Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution
Executing a covered call trade and understanding the accounting procedures on our online discount broker statements can be confusing to the new option trader. I have recently received a few emails regarding this topic so I thought it would be useful to show an actual...