Covered calls are an income strategy for traders and investors to earn money on stocks they hold. Covered Call Writing Covered call writing is an appropriate strategy in a bull market or one that is trading inside a repeating price range. Creating a covered call option play is when a trader or investor sells out-of-the-money …
This is a guest post from Gavin McMaster @OptiontradinIQ Searching for income has become a challenge. Bonds have been a traditional conservative income stream for decades. Yet, bond yields are now trading at historic lows. This has led some investors and advisors to jump into lower credit “junk” bonds simply to generate any income – …
Selling Covered Calls: How To Generate Yield In A Low Yield Environment Read More »
What is a covered call ETF? A covered call ETF is actively-managed to buy a stock index or individual stocks to use to write out-of-the-money call options on. They systematically use the covered call-option writing process to create returns through both capital gains on the held assets along with option premium from short call options. …
An investment portfolio generally comprises diverse assets like stocks, ETFs, mutual funds, and bonds. Although it offers numerous advantages, investing and trading in options, an additional asset class, is far riskier than regular equity investments. However, specialized options trading strategies like the covered call strategy can minimize risk and limit losses. Selling covered call options, …
