Covered Call Writing

Posts on selling covered calls, covered call writing, why covered calls are bad sometimes and covered call examples.

money pass computer | open in the money covered call strategy

In the Money Covered Call Strategy | Benefits and Examples

  Selling in the money covered calls can be an excellent income generating strategy for stock investors trying to live off investment income.  An in the money covered call strategy involves selling a call option with a strike price lower than the market value of the underlying stock. This strategy is commonly used when the call writer …

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Far Out Time

How Far Out Should You Sell Covered Calls?

  Covered calls can be an excellent income source for stock investors, but it can be confusing to select the best option expiration for the call being sold. The further out the option expiration, the higher the premium and the longer the stock has to reach the strike price. How far out you should sell …

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New Business | New Retirement Strategies

New Retirement Strategies

The old model of retirement no longer works for a lot of people who want to live well in retirement.  Old retirement strategies include basics like delaying social security, working longer and part time employment. But, fortunately, there are now some more innovative and lucrative retirement strategies that can be a real godsend for retirees.   Many millennials are already using some of these new retirement …

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Problem - Solution

Problems with Covered Calls

Covered calls can be an excellent way to increase income from stocks but like all investments, covered calls aren’t perfect. The problems with covered calls include stock market risk, company specific risk, high required capital, forfeiting of potential capital gains, taxes on call income, and ongoing management of unexercised options. It is my belief, however, …

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retirement nestegg | Are covered calls a good strategy

Are Covered Calls a Good Strategy?

In this time of low dividend yields, increasing stock income by selling call options on stocks you already own sounds pretty appealing to yield hungry investors. Are covered calls a good strategy? Covered calls can be an excellent income strategy for stock investors willing to forego capital gains above the strike price should the call …

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