CHAPTER 4

Implementing Covered Call Writing

Covered call writing can be simple or complex, depending on your approach. Through the selection of the underlying stock to buy and the particular call option to write, the strategy can be tailored to a multitude of different risk levels and market conditions, as well as a variety of goals and approaches. This chapter discusses the various uses covered writing can be put to and the ways it can be modified to suit various circumstances.

Follow-Up Actions

In the process of creating a covered write, you will discover that it alters not just the risk/reward parameters of your stock investment but the way you invest as well—your selection process, your expectations, and your follow-up activities. The change ...

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