When we write a covered call, there is a trader or market-maker buying that call on the other side of the trade. We know that as expiration approaches, the time […]
Writing Covered Call Options to Compensate for Share Depreciation
Covered call writing generates monthly (or weekly) cash flow but it also reduces our cost basis. The latter result is the reason why covered call writing increases our chances of […]
Covered Calls and Dividends: A Proposed Strategy
Covered call writers must factor in dividends into our investment strategies. More specifically, ex-dividend dates for these are the dates shareholders must own the shares to benefit from the dividend […]
Covered Call Writing And Dividend Capture: Evaluating A Proposed Strategy
Capturing dividends using covered call writing has been a topic on great interest lately. I recently wrote an extensive white paper on this topic located in the “resources/downloads” section of […]
How To Avoid Early Exercise When Dividends Are About To Be Distributed
Covered call writing is a low-risk strategy that allows us to generate monthly cash flow by selling stock options. Since we are obligated to sell our shares to the option […]
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