Tag: covered call Strategy
Revealed: How Stock Splits Help Options Traders
Stock splits re-entered the trading lexicon and grabbed the headlines when “Apple (AAPL),” and then “Tesla (TSLA),” announced they would be conducting a 4-for-1 and 5-for-1 stock split, respectively. Following the announcements, shares of each are up 18% for AAPL, and TSLA has zoomed up 40% in just six days. You couldn’t ask for two better […]
Understanding A Covered Call Strategy
The other day, I wrote about how people are piling into funds, then employ option premium-selling strategies, particularly covered calls or buy-writes. I figure it’s a good time to drill down into exactly what these strategies entail and highlight both the pros and cons. The covered call strategy is one of the most popular options strategies especially among investors that […]
Using Covered Calls To Increase Your Return In Twitter
I’ve just returned from the Orlando MoneyShow and was very impressed at the amount of investors and traders looking to learn more about options strategies. I had the opportunity to deliver two different presentations to the options-oriented folks. One of the topics I spent quite a lot of time on was covered calls. Of course, […]
The Best Time For Using Covered Calls
The Best Time For Using Covered Calls There probably isn’t an options-related topic as misunderstood – yet extremely popular – as trading covered calls. Covered calls are widely used by retail and institutional traders alike. However, I often feel the strategy is misrepresented, and sometimes poorly executed. You see, a covered call strategy seems simple […]
84% Of Investors Are Doing It… Are You?
I just heard an amazing statistic. According to one major brokerage firm (who will remain nameless), 84% of their active traders are using a simple strategy to make money in the markets. It’s a strategy that works best when markets are trading flat or slightly up. The strategy isn’t complex… and today I’m going to […]