Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...
Selling covered calls is an options trading strategy that helps you earn passive income using call options. This strategy works by selling call options against shares of a stock that you bought ...
We’ve seen that a PutWrite strategy using options on the Nasdaq-100 index (ticker NDX) can generate returns which are similar to the Nasdaq-100 index but which display substantially less risk as ...
Most traders understand what a covered call is, but far fewer understand when the strategy actually has an edge. In this clip from his latest YouTube instructional video, options strategist Rick ...
Most traders don’t struggle with covered calls because the strategy is broken. It’s because they start in the wrong place: Scrolling through random tickers, chasing yield, or forcing trades on stocks ...
Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. A covered call is an options ...
In options trading, an uncovered option refers to a call or put option that is sold without having a position in the underlying stock. An uncovered option can also be referred to as a naked option.
Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). A covered writer is an investor or trader who holds the underlying security as a ...
Selling (writing) options can be a great way to augment income, especially when market averages are close to their highs. Writing covered options is a much more conservative strategy than buying long ...