Ads
related to: covered call option writingFirstrade Leads Industry with Fastest Trade Execution - StreetInsider
assistantmagic.com has been visited by 10K+ users in the past month
Search results
Results from the WOW.Com Content Network
A covered option is a financial transaction in which the holder of securities sells (or "writes") a type of financial options contract known as a "call" or a "put" against stock that they own or are shorting. The seller of a covered option receives compensation, or "premium", for this transaction, which can limit losses; however, the act of ...
A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning the stock, you ...
These strategies may provide downside protection as well. Writing out-of-the-money covered calls is a good example of such a strategy. The purchaser of the covered call is paying a premium for the option to purchase, at the strike price (rather than the market price), the assets you already own.
The writing of the call option provides extra income for an investor who is willing to forego some upside potential. The BXM Index is designed to show the hypothetical performance of a strategy in which an investor buys a portfolio of the S&P 500 stocks, and also sells (or writes) covered call options on the S&P 500 Index.
The covered call generates income and hedges the risk that the stock soars. If it does, your ownership stake in the stock fully offsets the loss in the option. ... The covered call is one of the ...
Stock markets are looking overvalued, and investors looking to squeeze some extra value from their stocks should consider a covered call option strategy. A covered call is just a share of stock ...
Ads
related to: covered call option writingFirstrade Leads Industry with Fastest Trade Execution - StreetInsider
assistantmagic.com has been visited by 10K+ users in the past month