Top Nav

Covered Calls

Individual investors need to take a serious look at covered calls. This is especially true for investors who feel options are a highly risky trading vehicle.

covered-callsSo, what is a covered call?

By definition…a covered call is a conservative options strategy whereby an investor holds a stock or ETF in an asset and sells call options on that same asset to generate increased income. Unlike buying options outright, covered calls are a conservative strategy. In fact, covered calls are the only options strategy that is allowed in retirement accounts.

All you need to initiate the strategy is 100 shares of stock and a liquid options market. By liquid, I mean options with significant volume . If you own at least 100 shares of stock, then you have the ability to “sell a call” against your stock (assuming it has options, which most do). Remember, 100 shares of stock equals one option contract.

So why sell covered calls?

If you wish to bring in residual income on a consistent basis or if your market forecast is neutral to moderately bullish selling covered calls is the appropriate options strategy.

A Far More Affordable Way to Trade Covered Calls

There is an alternative to a covered-call strategy, and it's a good one. Here's how you can use "the poor man’s covered call" to your advantage.

How to Generate 5% in Income Using Microsoft Stock

Learn how to use the covered-call strategy – the best, and easiest, income strategy available to investors today. I'll show you how.

Just Announced: 15th Anniversary Event

Using one little-known strategy, you can collect extra income every month . . . even if you have a modest account. Learn how in this special event.

Weekly Options: 3 Potential Trades in SPY

Learn how to generate income with weekly options. Here are the steps I use and examples of three possible trades using the S&P 500 ETF, SPY.

Here’s a Way to Earn $350 Next Week

Learn about a weekly options trading strategy that is designed to help you earn quick profits of $350 before the end of this month.

More Recent Covered Call Articles

View All Covered Call Articles

Income and Prosperity Offer

Income & Prosperity is designed to help you seek out the safest income opportunities and discover an entire world of dividend investments. This free newsletter has a laser-like focus on one issue and one issue only: how can investors near or in retirement generate more income. Each day, you'll receive our best investment idea - skewed towards safe income - but also including lesser known opportunities to grow your wealth while keeping it out of harm's way.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.