Sentences with phrase «covered call strategy»

Still, there is one type of active ETF that has become extremely popular with investors: funds that use covered call strategies.

However, I can make an analysis to demonstrate the point how one can benefit from Covered Call Strategies?

A poor man's covered call is similar to a traditional covered call strategy, with one exception in the mechanics.

Covered call strategies generate income and can increase net sales proceeds.

CC i am surprised to find you writing on the nature of covered call strategies since you have said several times that you never trade options.

The 4 weekly covered call strategies on AAPL that Born To Sell is tracking are definitely lowering the volatility of owning AAPL.

Neither situation is good for covered call strategies.

Our 4 weekly covered call strategies on AAPL for 2016 are all in the black (profitable for the year to date), although trailing the buy - and - hold strategy currently.

The Cambria Covered Call Strategy ETF will be actively managed and invest primarily in other funds, including ETFs, exchange - traded notes and closed - end funds.

Cambria Funds filed for an options - strategy ETF, the Cambria Covered Call Strategy ETF.

Owning a diversified portfolio of large cap, blue - chip, dividend paying companies is a good basis for a long - term covered call strategy.

Losing covered call strategies include chasing high yields by buying stocks you don't want to own if not called, as well as buying stocks that don't pay enough in call premium to compensate you for the risk of owning them.

February 2016 — Capital Wealth Planning today announced that is has been recognized with Top Guns status by Informa Investment Solutions» PSN manager database for its Global Balanced Universe for the CWP Covered Call Strategy.

CWP has partnered with Amplify ETFs as a sub-advisor to bring investors the first ever rising dividend and tactical covered call strategy packed into an ETF.

Over the years, Kevin has developed a strategy that aligns CWP as an institutional management firm offering separately managed ETF and Equity portfolios that are complemented with a yield enhancing covered call strategy.

However, coupling a long put with a simple covered call strategy provides the ultimate protective strategy.

A study Barry Feldman and Dhruv Roy, cleraly shows the BXM Index (CBOE S&P 500 BuyWrite Index), a benchmark for an S&P 500 - based covered call strategy, had slightly higher returns and significantly less volatility than the S&P 500 over a time period of almost 16 years, despite the fact that covered calls have a truncated upside in the short term.

I did go looking for some research into this area and I found one closed - end fund that adopts a passive covered call strategy called BEP.

I like the underlying portfolio, and I don't have a big enough investment to implement my own covered call strategy, so by buying FTN you are paying FTN to implement this strategy.

One of the most popular covered call strategies is to buy stock expressly for the purpose of selling calls against it (known as a» buy - write»).

This means that you can ladder your options maturities — instead of having your entire covered call strategy maturing at the same time, say every three months, you can stagger the options to provide a more consistent cash flow.

Ignoring early exercise for simplicity, we find that the covered combination and covered call strategies generally outperform the long stock strategy, which in turn generally outperforms the collar and protective put strategies regardless of the performance measure considered.

The lower risk part is not exactly desirable in the case of covered calls because an investor is giving up the upside volatility but at least some studies showed covered call strategies performing as well as passive strategies.

Horizons BetaPro's Eden Rahim explains Covered Call Strategies.

Covered Call Strategy Risk: Trading in stocks and options that compose the covered S&P 500 Index portfolio is speculative and returns can be extremely volatile.

Born To Sell is pleased to offer a new series of covered call strategy and product demonstration videos for current users, new users, video junkies, and people who just want to learn more about covered call investing.

Our 4 weekly covered call strategies on AAPL for 2016 continue to do well.

You can use covered call strategies to add income to your portfolio or you can buy protective puts as insurance for your portfolio.

And yet two of our weekly covered call strategies are profitable year - to - date (the 12 % / year and 24 % / year strategies), which is pretty good for a stock that is down 8 % since we bought it.

The goal of the covered call strategy is this: generate income while keeping the portfolio intact.

This covered call strategy is for example purposes only, but can serve as an additional income generating technique for those investors comfortable with options.

Before you make your first trade, it's essential that you understand how a covered call strategy works.

A covered call strategy requires you to sell call options on a stock you just bought or already own.

First, the investor may have come into the session holding at least 2 million MU shares and previously sold the 33s as part of a covered call strategy.

You must not forget that there is a third dimension to a covered call strategy that consistently outperforms a long only strategy.

For instance, it's clear that the premium you collect in a covered call strategy does not reduce the strategy's «variability».

He points out that in a covered call strategy, the distribution of returns is not «normal» and that standard measures such as the Sharpe ratio are not very useful in measuring risk.

Before you make your first trade, it's essential that you understand how a covered call strategy works.

Properly done, a covered call strategy should in the long run net zero, minus costs.

A covered call strategy offers no downside protection.

The covered call strategy works particularly well in a sideways moving market.

Below is a graph outlining the return profile of a covered call strategy, with the underlying stock as the dotted line and the combined equity - and - short - call return profile as the solid line.

Among option - based strategies, the covered calls strategy is the easiest to grasp, the most popular, and the most conservative.

The covered calls strategy has been used by conservative investors for decades.

The ideal scenario for a covered call strategy is a slowly rising market, where the equity position gains but never moves past the strike price of the call option.

While the covered call strategy sounds like a clever way to supplement return with income, there are two major risks associated with it: one on the upside and one on the downside.