Sentences with phrase «covered call option strategy»

The covered call option strategy is most effective in sideways to slightly rising markets.
The covered call option strategy allows the portfolio to generate additional income from the call option premiums in addition to the dividend income from the underlying stocks.
A covered call option strategy is implemented by selling a call option contract while owning an equivalent number of shares of the underlying stock.
Briton also manages the Real Income Trader advisory service, where his readers trade stock options and take regular cash payouts using a low - risk covered call option strategy.
Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low - risk covered call option strategy.
It went down a little, which for a covered call option strategy is good, but then it kept going down and down and down.
One deep - value investment that has treated me well so far is Dream Office REIT, which I've invested in alongside a covered call option strategy for some serious income.
We also complement our equity and fixed income investments with the selective use of the covered call option strategy to further enhance returns.
One deep - value investment that has treated me well so far is Dream Office REIT, which I've invested in alongside a covered call option strategy for some serious income.
Regardless, even if growth does slow, I'm employing a covered call options strategy to maximize my yield in the case of a flat or down market.
Learn more about the covered call options strategy as our TD Expert highlights some basic risk and rewards involved in the strategy and why investors may consider using it in a low interest rate environment.
In addition to applying this strategy to individual stocks, you can invest in ETFs dedicated to covered call option strategies.

Not exact matches

Since the financial crisis, Carson has developed a number of specialty strategies, including managing rental properties, buying health - care royalty streams and writing covered call options to help diversify his clients» mix of returns.
This covered call strategy is for example purposes only, but can serve as an additional income generating technique for those investors comfortable with options.
If you're curious about covered call writing, Investopedia defines it as the strategy of giving a buyer the option to buy your stock shares at a pre-determined price before the option's expiration date.
PBP writes covered calls on its portfolio of S&P 500 securities, an options strategy which increases the yield substantially but also limits potential upside.
Investing with Options — I think that everyone should learn the Covered Call and Short Put option strategy (post coming soon).
If you're looking for an options strategy that provides the ability to produce income but may be less risky than simply buying dividend - paying stocks, you might want to consider selling covered calls.
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Although cash - secured puts and covered calls are distinct strategies requiring different levels of options trading approval, their risk / reward relationship is very similar.
The second is a tested «covered call option» income enhancement strategy.
A covered call strategy requires you to sell call options on a stock you just bought or already own.
Presented by: Jason Ayres, President OptionSource.net In this investor education session, sponsored by BMO InvestorLine, attendees will learn about an options trading strategy known as «the covered call».
The covered calls strategy is the first option trading strategy that new options investors learn, and our set of easy - to - use tools makes it simple and fun.
If you're looking for an options strategy that provides the ability to produce income but may be less risky than simply buying dividend - paying stocks, you might want to consider selling covered calls.
One of the most common option - based strategies is the covered call.
FTHI also utilises an options strategy in which it writes (sells) US exchange - traded covered call options on the S&P 500 index seeking to generate additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis.
The covered call strategy is the easiest option strategy to grasp, the most popular, and the most conservative.
While the collection of option premium might supplement the returns, the primary driver of a covered call strategy will most likely be simply the upward or downward movement in the stock price.
Option exercise is common when implementing a covered call strategy and is no big deal; it just means you receive cash for your stock, and now you can take that cash and go buy more stock (or you could party like a rockstar, or hire a personal fitness trainer; your choice).
We specialize in stocks, bonds and options and we engage in a lot of premium selling in managing our strategies, whether it is covered call writing or naked put selling.
There are two options strategies any investor can use to create yield that far exceeds traditional avenues: Covered Calls and Writing Puts.
To learn more about the strategy, its risks and potential rewards, see Simon Avery's excellent article, How covered call options can be a profitable tool, in The Globe and Mail.
Purpose Premium Yield Fund uses cash - covered put and covered - call options strategies blended with fundamentally selected equities to generate income while mitigating risk, according to the firm's announcement released on Tuesday.
This covered call strategy is for example purposes only, but can serve as an additional income generating technique for those investors comfortable with options.
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).
Our option screener makes it easy to implement a dividend capture strategy combined with covered calls.
Because our strategy writes covered call options against the underlying securities, a concentrated portfolio strategy is a great product for the middle market investor who has roughly $ 250,000 and up to invest and can benefit from strategies that were at one time only available to institutional, endowment and trust investors only.
I invest in both, but I prefer stock investing because I have more tools to reduce the potential of losses, I don't have to tie up as much money for long periods of time to make a profit, I can achieve rising cash flow through dividend growth stocks and covered call writing (a low risk option strategy), I can use leverage through margin or options to accelerate my returns, and I don't have to deal with tenants, insurance and building inspectors, and tradesmen.
For investors who like to keep things simple and conservative, covered calls using stock is a better choice than any multi-legged pure option - based strategy (such as LEAP covered writes).
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While this is certainly true of some options strategies, covered calls are actually more conservative than investing in ETFs or stocks alone.
The covered - call strategy is often employed when an investor has a short - term neutral - to - bearish view on the asset and for this reason decides to hold the asset (long) and simultaneously have a short position via the option to generate income from the option premium.
The covered call strategy that forms the basis of the study is a long investment in the S&P 500 Cash Index on which S&P 500 call options are sold.
Covered calls are an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset.
It signals the trader must consider strategy options: holding, selling a covered call, tightening the stop or taking partial profits.
Specific strategies for reducing or «hedging» market exposure may include buying put options on individual stocks or stock indices, writing covered call options on stocks which the Fund owns or call options on stock indices, or establishing short futures positions or option combinations (such as simultaneously writing call options and purchasing put options) on one or more stock indices considered by the investment manager to be correlated with the Fund's portfolio.
Unlike other firms that cover many different (and often competing and confusing) option strategies, we want to be the best at just one thing: covered calls.
A covered call strategy involves selling call options (that is, options to buy shares) on stock you own.
A covered call is an options strategy where you buy a stock or ETF, and write (sell) call options on the same stock or ETF.
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