An Annualized Return of 5000% and Feeling Miserable: Interpreting Our Covered Call Trades

An Annualized Return of 5000% and Feeling Miserable: Interpreting Our Covered Call Trades

Mar 16, 2019 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies

Whether we are using covered call writing, put-selling or any other investment strategy, investor interpretation of results is an interesting topic to analyze. Is the glass half-full or half-empty? On October 5th, 2018, Gene wrote me about two covered call positions...
Increasing Capital Gains When Selling Stock: Another Use for Covered call Writing

Increasing Capital Gains When Selling Stock: Another Use for Covered call Writing

Oct 20, 2018 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies

Covered call writing is a low-risk option-selling strategy typically used to generate monthly cash flow. When we capture call premium into our brokerage accounts, we are lowering our cost basis thereby increasing the opportunities for successful trades. This strategy...