The Boss may have said it best in 1984 when he wrote the song Cover Me. Of course this song was not about writing covered calls to provide some protection on the downside, but we can certainly ...
Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated history of working in both institutional and retail environments, from broker-dealers to ...
Covered calls are a great strategy to add to any portfolio, and can offer enhanced yield from stock holdings, in some case, that can be a significant increase. To trade a covered call we need to own ...
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 ...
Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...
And yet, as good as a 3% to 5% yield is in a world of record low interest rates, it sure would be nice to squeeze a little more money out of these dividend darlings. Or, better yet, how about turning ...
Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...
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 ...
Here's an example: Let’s say an investor owns 100 shares of XYZ stock trading at $50. They sell a covered call with a $55 strike price and collect a $2 premium per share ($200 in total). If XYZ stays ...