Oct 21, 2017 | Covered Call Exit Strategies, Exit Strategies, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Every investment strategy, including covered call writing and selling cash-secured puts, has advantages and disadvantages. When we decide to implement a plan, it is with the understanding that we accept and embrace these pros and cons. It is not productive to look...
Aug 26, 2017 | Investment Basics, Option Trading Basics, Put-selling
Covered call writing and selling cash-secured puts are more conservative strategies than trading naked options (selling calls and puts without having the resources to execute the potential trade obligations, if exercised). A naked call occurs when a speculator writes...
May 13, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Many assume that covered call writing is a zero sum game because we have traders executing equal but opposite trades using the same underlying security. As a covered call writer, we may sell 5 contracts of AAPL which means there is a buyer out there who just bought...
Dec 10, 2016 | Investment Basics, Option Trading Basics, Put-selling, Stock Option Strategies
An accepted myth is that covered call writing and selling cash-secured puts are precisely the same strategy. The reason this statement is generally accepted by many investors is that they have the same risk-reward profiles or profit and loss graphs: In this...
Nov 19, 2016 | Investment Basics, Option Trading Basics, Options Trade Execution, Stock Investing, Stock Option Strategies
Stock and ETF (exchange-traded fund) selection is one of the three required skills needed to achieve the highest level of success when selling options. Covered call writers and put-sellers have varying degrees of personal risk tolerance and trading styles. As a...
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