Sentences with phrase «of covered call»

But as you note, distributions are tiny and the whole point of the covered call strategy is to earn extra income from the portfolio.

The obvious benefit of a covered call strategy is that it allows investors to earn extra income from their portfolio by selling covered calls.

Another benefit, at least according to this study by Ibbotson that looked at historical performance of a covered call strategy, is lower portfolio volatility.

This week, we'll take a closer look at ZWB and a clutch of covered call ETFs from Horizons AlphaPro.

Yes, volatility of a covered call strategy appears to be lower but I wonder if it is just a function of giving up volatility on the upside (which is a nice problem to have).

By examining the strategies of covered call writing and selling cash - secured puts when using a mix of ETFs (Exchange Traded Funds), I show the individual investor how he / she can own a hedged and diversified portfolio.

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.

An ETF allows investors to take advantage of a covered call strategy without having to implement it themselves.

@Viscount: To add to my comment, Sharpe ratio may not be a good measure of the risk of covered call ETFs because the distribution of returns is not normal.

The one year performance (for the period ending Jan. 31) of the Covered Call Banks ETF (ZWB) is compared with that of the Equal Weight Banks ETF (ZEB) in the following table:

TORONTO — March 22, 2018 — Horizons ETFs Management (Canada) Inc. («Horizons ETFs») is pleased to announce the distribution amounts per unit (the «Distributions») for the Horizons ETFs suite of covered call exchange traded funds (the «ETFs»), for the period ending March 31, 2018, as indicated in the table below.

TORONTO — March 23, 2017 — Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. (collectively «Horizons ETFs») are pleased to announce the distribution amounts per unit (the «Distributions») for the Horizons ETFs suite of covered call exchange traded funds (the «ETFs»), for the period ending March 31, 2017, as indicated in the table below.

It filters and sorts all known covered calls according to your personalized investment criteria (see a live demo of the covered call screener):

This is one of the largest risks of the covered call.

Positioning of strike, expiration and proximity are crucial to the success of a covered call strategy.

Another way to think of a protective collar is as a combination of a covered call plus long put position.

With a share price of $ 212,070.00 as of market close on June 14, 2016, purchasing 100 shares for the sake of the covered call strategy would cost about $ 2,1207,000.00.

If the gross options premium of your covered call strategy is only $ 40.00, then 75 % of your profit is eating away by trading commissions.

But the beauty of the covered call transaction is that he would have made the same 1.19 per share if JCI had closed at 31 or higher.

Readers, what do you think of the covered call income strategy?

The key attraction of covered call ETFs is the ability to generate income from a portfolio of stocks.

Also, it should be noted that operating expenses of covered call ETFs will be higher compared to index ETFs due to higher turnover.

The Service is a collection of software applications that allows Subscribers to search for potential covered call investments and track their portfolio of covered call investments on Borntosell.com.

The strength of a covered call strategy is made clear when investors look to the total volatility of the strategy relative to simple long - only strategies.

The covered call premium was significant, up 66.4 % over the period, as we might expect of a covered call strategy in a relatively flat and choppy market, especially apparent in the 2004 - 6 and post 2009 periods.

This erosion of time premium is the source of a covered call writer's income.

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.

«The CRA's view is that the writing of a covered call option, whereby a registered plan sells a call option in respect of an underlying property which it already owns, does not result, in and of itself, in the registered plan being considered to be carrying on a business.

Horizons ETFs Management (Canada) Inc. is pleased to announce the distribution amounts per unit for its suite of covered call exchange traded funds, for the period ending April 30, 2018.

TORONTO — April 23, 2018 — Horizons ETFs Management (Canada) Inc. («Horizons ETFs») is pleased to announce the distribution amounts per unit (the «Distributions») for its suite of covered call exchange traded funds (the «ETFs»), for the period ending April 30, 2018, as indicated in the table below.

Horizons ETFs will make an additional announcement of the March distributions for its family of covered call exchange traded funds on or about March 22, 2016.

The attribution analysis goes one step further by dividing the return of the covered call portfolio into four categories: market risk (S&P 500 and delta return), lottery risk (theta and gamma return), ex ante volatility risk (vega return), and other option risks.

I'm not really a fan of the covered call ETFs, either.

As you can see the stock almost doubled within the time frame of my covered call.

All of our tables allow you to show or hide these 4 kinds of covered call returns, although many people prefer to just look at Annualized Return If Flat and hide the others.

Some of the covered call screener features:

Horizons launched a whole slew of covered call ETFs last year of which the Horizons Enhanced Income Equity ETF (HEX) turned out to be the most popular.

In the context of covered call investing, the «interest» is the option premium you receive and the «compounding» is the fact that you reinvest your gains each month.

I didn't write anything about the launch of XTF Capital at the time, because their first lineup of products was a series of covered call ETFs and a convertible bond ETF that have little or no relevance to Couch Potato investors.

If you trade at a broker where the extra commission of a covered call matters then you should be looking for a lower cost broker.

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.

It is one half of a covered call trade (the other half is the stock you own).

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.

If your style of covered call investing with monthlies is to write deep - in - the - money (DITM) then you'll probably do the same with weeklys.

Would selling another call help compensate for any loss on the buy close of the covered call and help the investor hold on to the underlying?

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.

A large part of covered call investing is about collecting time premium, and if the option you sold has very little time premium remaining then it could be time to buy it back and sell another option that has more time premium.

It may be tempting to sell these fat - premium options as part of a covered call but if the underlying stock makes a 10 % move downward you are likely going to regret it.

All the risk of loss is to the downside, due to the long stock position as part of a covered call.

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