Ads
related to: most profitable covered call stocks- Best Way to Buy Stocks
Choose Your Trading Account
Build a Portfolio & Start Investing
- Investments For Beginners
Start Trading With The Best Brokers
Open an Investments Account from 0$
- Best Trading Platforms
Compare & Choose Your Account
Day trading, Options and More
- Stock Brokers Reviews
Best Investments Accounts Reviews
Side-By-Side Comparison
- Best Way to Buy Stocks
theotrade.com has been visited by 10K+ users in the past month
Search results
Results from the WOW.Com Content Network
Name. Purpose. How it Works. Benefits. Risks. Covered Calls. Income. Investor owns underlying stocks and sells call options allowing buyer to purchase the shares at set strike price by expiration ...
1. Covered call. Whereas an uncovered call sells a call without any protection, a covered call involves owning the underlying stock and then selling a call for every 100 shares owned. The covered ...
A covered call involves selling a call option on a stock that you already own. By owning the stock, you’re “covered” (i.e. protected) if the stock rises and the call option expires in the money.
The term buy-write is used because the investor buys stocks and writes call options against the stock position. 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 ...
Payoffs from a short put position, equivalent to that of a covered call Payoffs from a short call position, equivalent to that of a covered put. 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.
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. This is how traders hedge a stock that they own when it has gone against them for a period of time.
Ads
related to: most profitable covered call stockstheotrade.com has been visited by 10K+ users in the past month