How to Choose the Right Covered Call
By now, you might be feeling rather comfortable with the idea of selling covered calls. Maybe you think that the art of picking the right call is simply looking up the option with the most expensive premium and selling that option. Unfortunately, this is what some people do, but it’s not the best method. Some people think the hardest part is deciding how much money they want to make!
What you may not realize is that there is an art to picking the correct covered call, and premium is only one part of the equation. In this chapter, we look closely at all the factors that lead us to make the right covered call.
Until now, most of our time has been spent looking at definitions. In this chapter, however, we do ...