How to Roll a Covered Call? Time to Find Out

Overview The purpose of this post is to explore various investment scenarios in order to assess whether or not covered calls should be adjusted. It is possible to roll a covered call using a variety of tactics. We will go through each method in further detail and provide examples. What Does It Mean to “Roll… Continue reading How to Roll a Covered Call? Time to Find Out

How to Sell Covered Calls for Monthly Income Now

Overview This post will discuss the purpose of selling covered calls as well as how to use different types of calls in different situations to increase the return on your investment portfolio. Finally, it addresses the question of whether or not you should roll a covered call, as well as the specifics of how to… Continue reading How to Sell Covered Calls for Monthly Income Now

How to Make Use of Covered Calls in a Bear Market

The Purpose of Covered Calls Selling in a Bear Market A bear market may be a traumatic experience for long-term investors, particularly for those who are nearing or have reached retirement age. Bear markets have the potential to wipe out multi-year profits and the losses might be particularly severe for elderly retirees who do not… Continue reading How to Make Use of Covered Calls in a Bear Market

CC Covered Calls Buy-Write Strategy Update 7/11/2021

Overview Here’s an update on the stock symbol CC covered calls I started on 6/23/2021. Due to recent market fluctuations, I adjusted my positions on 7/8/2021. Here’s some background information on the stock and the covered call strategy. This is about the CC shares I bought and sold along with the CC OTM Covered Calls.… Continue reading CC Covered Calls Buy-Write Strategy Update 7/11/2021

CC OTM Covered Calls Buy-Write Strategy

Overview This is about the CC stocks I purchased and sold the CC OTM Covered Calls. CC is The Chemours Company’s symbol. This is a buy-write strategy. Wilmington, Delaware-based The Chemours Company is a major supplier of performance chemicals that are used in a wide range of end-products and processes. Chemours began operations as a… Continue reading CC OTM Covered Calls Buy-Write Strategy

Update on SDS Buy-Write Strategy Covered Calls

Overview On 4/12/2012, I initiated a buy-write strategy covered calls with SDS, ProShares UltraShort S&P500. The ETF was acquired at a cost of $10 per share. The covered call contract was written at a cost of $0.55 per contract. The stock’s cost basis was $9.45. What Happened It wasn’t a good setup. On 4/12/2021, the… Continue reading Update on SDS Buy-Write Strategy Covered Calls

SDS ATM Covered Calls Update – A Buy-Write Strategy

Overview This is about the SDS stocks I bought and sold the SDS ATM Covered Calls. This is a buy-write strategy. Purchased SDS at $10 per share and sold the 6/18/21 $10 Call at $0.55 per call on 4/12/2021. SP 500 closed at 4128 on 4/12/2021. What Happened SDS is ProShares UltraShort S&P 500, which… Continue reading SDS ATM Covered Calls Update – A Buy-Write Strategy

Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 2

Benefits of Covered Call Writing Covered calls writing generates returns in three ways: The call writer collects the premium up front. The covered call writer earns any dividends paid on the call-covered stock. The call writer may realize the gain when the underlying stock price goes up. For example, AT&T is trading at $35.  The… Continue reading Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 2

Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 1

Dividend Stocks Stock dividends are a great way to increase earnings in a low interest rate environment.  Combined with the covered call writing strategy, we can increase our returns on investment and minimize the downside risks at the same time. If you don’t need the income from dividends now, you can opt in to take part… Continue reading Build a Portfolio with Dividend-Paying Stocks and Covered Calls to Maximize Returns – Part 1