Why Should You Consider Selling Covered Calls During a Bear Market? It can be challenging for investors to ride out a bear market. In particular, those who are retired or close to retirement age are hurt the hardest. Bear markets can wipe out years of hard-earned profits. For retirees with limited time and resources, this… Continue reading How to Use Covered Calls in a Falling Market
The Purposes of Selling Covered Calls When selling covered calls, there are two objectives. The first purpose is to profit from time decay in option contracts. When you sell options, time decay works in your favor, ensuring that your realized returns for the year are between 3% and 10%. The second factor is the stock’s… Continue reading Selling Covered Calls: How to Generate Steady Monthly Income
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
Overview This post will examine the benefits and drawbacks of the covered call strategy, which involves buying stock while selling call options. We’ll also take a look at a case study that includes ATM, OTM, and ITM cover calls combined. Covered call methods hope to generate income through option premiums. Benefits of the Covered Call… Continue reading Simple Ways to Make More Money with Covered Calls
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
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
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
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?
Boost Returns With High-Dividend Stock Covered Calls Writing covered calls on high-yield dividend stocks is a common way to increase returns on an investment portfolio. This is because the call option premium protects against the drop in share price on the ex-dividend date. When the yield is high, the risk is low. The option premium… Continue reading How to Boost High Dividend Covered Call Returns
Should one employ the covered call strategy? There is no guarantee that using covered calls will result in a low-risk options strategy. Given that the writer already owns the underlying stock, the option carries minimal risk. Still, a sharp decline in the share price may result in a large loss. The loss is mitigated a… Continue reading How Successful is the Approach of Writing Covered Calls?