Friday, 23 November 2012

COVERED CALL OPTION

Selling the call obligates you to sell stock you already own at strike price  if the option is assigned. One can run this strategy after they have already seen nice gains on the stock. Often, they will sell out-of-the-money calls, so if the stock price goes up, they are willing to part with the stock and take the profit....
Covered calls can also be used to achieve income on the stock above and beyond any dividends. The goal in that case is for the options to expire worthless.
If you buy the stock and sell the calls all at the same time, it’s called a ”Buy / Write.” Some investors use a Buy / Write as a way to lower the cost basis of a stock they have just purchased.

More about Option Call Put tips on google+

5 comments:

  1. Nice to see a new option trading tipping site thats up to date, keep the tips coming :). I have subscribed via email, so ill be back haha.

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  2. Thank you for posting the great content…I was looking for something like this…I found it quiet interesting, hopefully you will keep posting such blogs….Keep sharing.

    By
    John Methew
    Options Trading

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  3. his section will go over what options are, the best ways for trading options (including video tutorials),trading binary options

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  4. Great way of thinking. Covered calls have always been the best trading strategy for me! Covered call trading strategies with the mini-options are going to be great! I just found out who is doing mini-options in Australia!

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  5. Informative recommendation. The firm is capable in the art of providing quality based covered calls services through which the purchaser can meet all his/her demands regarding the service being provided by them. N number of high profile companies are making their online website more stronger to offer these services to the daily internet seekers who are searching for the same comforts.

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