Covered Call Writing

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

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 know the best option expiration to choose 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 …

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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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phone | how do covered calls work

How Do Covered Calls Work?

  You may have heard that selling covered calls can increase earnings from stocks.   How do covered calls work exactly? Covered call writing is a strategy where a stock investor sells call options that give the call option buyer the right to buy the stock from the stock investor at a set price and within a certain …

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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 those living off investments.  An in the money covered call strategy involves selling a call option with a strike price lower than the cost of the underlying stock. This strategy is commonly used when the call writer expects the stock price to decrease, …

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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 risk, high capital, missing capital gains, taxes, and management. It is my belief that the benefits far outweigh the problems with covered calls for income …

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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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money pile | Does Living Off Covered Calls Really Work

Does Living Off Covered Calls Really Work?

Selling covered calls can generate income of roughly 2 to 12 times that of dividend income received from the same stocks. Living off traditional investments has become challenging since the yields from both stock dividends and bond interest are so low, leading investors to consider covered calls. Is living off covered calls is feasible? Income from …

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