Tag: covered call writing
Options Trading: Understanding Put-Call Parity
If I had a nickel for every time someone told me they love covered calls for their conservative income generation, but would never sell a naked put because that’s too risky, I could retire from trading. The fact is a covered call is exactly the same, in terms of both risk and reward, of selling a […]
So How Do We Trade The Markets Now?
In an amazingly short amount of time, the financial markets appear to have stabilized. It was shaping up to be a very tense month of February, with several catalysts capable of roiling the market. Somehow though, the past week or so has gone more smoothly than many could have imagined. First off, the biggest (potential) […]
Covered Calls: Catch More Upside With A Buy-Write Strategy
The S&P 500 has gone up six weeks in a row and it’s trading near multi-year highs. But you wouldn’t know how well the market has performed lately by simply looking at investor sentiment. According to the weekly sentiment survey from the American Association of Individual Investors, bullish sentiment has fallen nearly 10% over the last […]
Covered Calls: Cash In Before Fiscal Cliff Part 2
Last week investors sent stocks soaring higher once it became clear a deal would be made to avoid the fiscal cliff. The S&P 500’s 4.5% surge was one the indexes best weeks in years. It also pushed the large cap index to its highest close since 2007. But we’re already beginning to wonder how long […]
Covered Calls: Shopping For Big Returns On Small Price Gains
Holiday shopping is in full swing… Retailers are hoping the introduction of more branded shopping days will entice consumers to spend more money than ever. It began with Black Friday, the day after Thanksgiving. Then Super Saturday, the Saturday before Christmas popped up. And then the internet gave rise to Cyber Monday, the Monday after […]
