Bear in mind that assignment is always a risk when selling a covered call. As such, be careful not to write calls against a stock you're not ready to part with. Or, as in the example above ...
Selling covered calls is an income-generating strategy that you can use to increase your returns on stock holdings. It’s also a strategy to use to buffer your losses if you believe the market ...
Investors that establish a buy-write position or a covered call sell their upside by selling an OTM call against the long shares. All in all, covered calls and buy-writes have the same strategy ...
This is especially true with options trading strategies like covered calls, which require you to own the underlying security - like a stock. As a refresher, covered calls aim to generate income by ...
The process of selling call options against a stock you own is known as writing covered calls. In doing so ... For example, you can write multiple options with a series of staggered strike ...
What are covered calls, and how do they work ... You decide that you want to write, or sell, a call option that gives the holder the right to buy 1,000 shares from you at $33 per share.