The Purpose of Covered Calls Selling in a Bear Market When the market is falling, long-term investors may find it difficult to weather the storm. People who are nearing or in retirement are hit particularly hard. Bear markets can wipe out multi-year profits, which can be devastating for elderly retirees who have less time to… Continue reading How to Make Use of Covered Calls in a Bear Market
Category: Covered Calls
How to Write Covered Calls: 3 Simple Examples
Overview In this post, you will learn about covered calls, how to sell them, and how to analyze the risk associated with them. It then goes on to demonstrate how to do it correctly in three different market situations. What Are Covered Calls? The covered call technique is easy to understand and execute. Selling a… Continue reading How to Write Covered Calls: 3 Simple Examples
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 Roll a Covered Call? The Best Strategy
Overview When to Roll a Covered Call? This post will examine several investing scenarios to determine whether or not covered calls should be changed. A covered call can be rolled in several ways. We’ll go through each approach and give examples. Whether to roll over a covered call option depends on your stock expectations. If… Continue reading How to Roll a Covered Call? The Best Strategy
What About Selling Covered Calls in a Down Market?
Is It a Good Idea to Use Covered Calls in a Bear Market? Investors use covered calls when they plan to hold the underlying stock for a long time. Meanwhile, they don’t expect any sharp price changes in the near future. By simultaneously holding stock and selling covered calls, an investor can potentially increase returns… Continue reading What About Selling Covered Calls in a Down Market?
How To Profit from Covered Calls: Citizens Financial Group
How To Find Best Stocks for Covered Calls? Beta is a risk indicator widely used to compare stock volatility. It helps us find stocks for covered calls. We search for stocks with a low to slightly above average beta, which means they don’t move as much as growth stocks. This technique is enhanced by dividend-paying… Continue reading How To Profit from Covered Calls: Citizens Financial Group
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