Sentences with phrase «above call option strategies»

The above call option strategies can be combined with a vast array of more exotic positions, but should provide a good introduction to the basics.

Not exact matches

On Monday, in a colorful strategy that options traders refer to as a «call stupid,» one trader bet $ 2 million that Microsoft could soar above $ 50 by the end of next week.

One negative of this strategy is that if your stocks rise by more than 5 % in 1 month then you will either have to buy the options back (potentially at a loss) or let the stock get called away (in which case you've still made at least 5 % on that position for that month but have forfeited any gains above the strike price (see Covered Calls For Dummies for more info).

I don't do any margin trading, but to answer Cody's concern above, in most cases, you have to have a margin account to use option strategies such as covered calls.

This is generally considered to be a conservative strategy because it decreases the risk of stock ownership while providing additional income; however, it caps upside potential on price increases above the strike price at which the call option is sold.

A strategy called a «backdoor Roth» gives investors who have a traditional IRA the option to convert it to a Roth even if they are above the Roth income limits.