Covered Calls Articles
If you own at least 100 shares of stock in your account, you have the opportunity to sell a covered call option against those shares.
So, what does that mean?
Basically, you can sell one call option (one option contract equals 100 shares) against the shares of the company you own to an option buyer.
In doing so, you’re giving up the right to own the shares to the person who buys the option from you. And when he buys, he now has the right to buy the shares from you at a pre-determined price (the strike price). For that right, he must pay you money - yours to keep, free and clear, no matter what happens in the future. That’s your return.
If the stock moves up past the strike price of the option you sold, you will then be obligated to sell your shares of stock to the option buyer at the stated strike price. Is that a bad thing? Not if you do the trade correctly, and have a price in mind that you would be willing to sell the shares anyway.
Covered Calls Articles on Smart Profits Report:
Covered Call Options: Turning A Stagnant Stock Into An ATM
Buying Covered Calls & Put Options: Two Ways To Play A Downside Trend
Selling Covered Calls: Getting Cash for Stocks You Already Own
The Breakdown Of A Covered Call Trade: How You Can Get Paid For Holding Shares
Long-Term Covered Calls: The Best Way to Play Satellite Radio
Covered Calls Strategy: The "Big Daddy" of Options
Defensive Covered Call Strategy: What’s Better Than Making Money? Keeping It
Trading Deep-In-The-Money Covered Calls: Dividend Paying Stocks That Can Boost Income
Covered Calls and Put Options: How to Grow Your Equity By Going Naked
IBM and Google Covered Calls: Tracking These 2 Giants For An Income Jolt
Writing Covered Calls: How to Double Your Stock Profits with Options
Deep-In-The-Money Covered Calls: How to Beat Stocks with Less Risk
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One Response to “Covered Calls Articles”
[...] the covered call investment strategy (and several others, for that matter) in more detail on our Smart Profits Report [...]