Aug 20, 2016 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Covered call writing is a low-risk option-selling strategy that allows us to generate monthly cash flow in sheltered and non-sheltered accounts. One of the main reasons this has been the go-to strategy in the stock portion of my portfolio is related to the fact that...
May 14, 2016 | Investment Basics, Options Calculations, Stock Option Strategies
Covered call writing can be used in a variety of ways. Most covered call writers use this strategy to generate monthly cash flow. It can also be adapted to enhance the returns of a long-term buy-and-hold portfolio where some of our securities may have been purchased...
Oct 3, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
There are certain fallacies and deceptions associated with covered call writing as there are with all investment strategies. I am the first to say that there is no one strategy right for every single investor. We must master the pros and cons of each strategy to...
Dec 7, 2013 | Covered Call Exit Strategies, Option Trading Basics, Options Calculations, Stock Investing, Stock Option Strategies
Last week I wrote Part I of an article on portfolio overwriting, a covered call-like strategy for buy and hold portfolios. In today’s article I will walk you through the process of how this strategy can be accomplished. Keep in mind that there are many ways to...
Dec 8, 2012 | Option Trading Basics, Stock Investing, Stock Option Strategies
For covered call writers the main stock option strategy is to purchase an equity specifically for the purpose of selling the corresponding call option. The investment time frame is one to two months as earnings reports will end the “run” of even the best performing...