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.
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.
ReplyDeleteThank 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.
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John Methew
Options Trading
his section will go over what options are, the best ways for trading options (including video tutorials),trading binary options
ReplyDeleteGreat 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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