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Tag Archives: naked options
is covered call writing a zero sum game

Is Covered Call Writing a Zero Sum Game? Let’s Do the Math

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 our contracts. If we win, they lose and […]

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Greeks and covered call writing

Naked Call Sellers VS. Covered Call Writers: Different Perspectives

Covered call writing and selling cash-secured puts are considered conservative, low-risk option strategies. Naked option trading is acknowledged to be a more speculative approach to trading options. In the case of covered call writing especially, this is confirmed by the fact that brokerages require a higher level of trading approval for naked option trading than […]

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covered and naked call writing

Covered Call Writing With A Twist: Selling 2 Calls Per 100 Shares

Covered call writing is a strategy that can be applied in several different manners. I have written about generating monthly cash flow, the main reason we use this great strategy. But it also can be used to augment long-term buy-and-hold portfolios, enhance dividend distributions by decreasing our cost basis and protect us in bear market […]

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