The Joy of Selling (Writing) Covered Calls
You’ve waited a while to apply all the isolated bits of knowledge we’ve discussed so you can finally begin trading. Learning the strategies is not that difficult. The difficulty lies in the fact that for each strategy, you have many choices of what to do. In the stock market, you really have three decisions: buy, hold, or sell. But with options, you have more choices. (Why do you think they call them options?)
In Part 2 we discuss almost all you need to know about selling or writing covered calls. It’s not necessarily easy to learn, although it’s considered a conservative options strategy. Selling covered calls is mostly used to generate income or cash flow, which is why it’s so popular with both professionals ...