Sentences with phrase «write call options»

You can also write call options on stock positions you already own to generate income and reduce downside risks.
Now, imagine you are willing to sell any of these stocks if they rise by 5 % or more in a 30 day period, i.e. you write call options (stock options) against all of them that are about 5 % out - of - the - money.
Carson says that writing call options on a basket of stocks with high - dividend yields can generate a return of between 10 percent and 15 percent.
HEX writes call options on most of its portfolio, usually with a one month maturity and at a strike price slightly higher than the prevailing market price.
Unlike HEX, ZWB writes call options on only about half its portfolio.
The plan is to buy ETFs which track the S&P 500 while writing call options to generate income.
Plus I might as well write another call option for some more income.
My conclusion is that it is possible to get an excellent income stream (10 % or so after fees) from a combination of buying strong yield stocks and writing call options against the positions.
In addition to seeking high - yield dividend stocks, you can also increase the yield by writing call options against them each month.
Index investing doesn't require studying company balance sheets, writing call options, positioning yourself on the yield curve, or any of those other things that might make active investors sound smart.
This is when you are currently long a position, and you write a call option on that asset in an attempt to generate income from the asset.
As with stocks, an investor can also short, or write a call option.
For example, the fund owns shares in Bank of Montreal (BMO) and has written call options expiring in June 2011 with a strike price of $ 62 and $ 64.
The Fund seeks to achieve the investment objective by investing primarily in: Dividend - paying common stocks, and by writing call options on common stocks and common stock indices.
Instead of buying a call option, let's say you decide to write a call option.
Sometimes you want to buy stock merely for the purpose of writing a call option against it prior to an earnings announcement.
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.
If you are holding some number of shares of a company, write a call option and purchase a put option for equal number of shares of the company with the same expiry -LSB-...]
He then immediately writes a call option with a strike price of $ 40.
Writing call options can reduce the risk of owning equity securities, but it limits the opportunity to profit from an increase in the market value of stocks.
When writing a call option, the seller agrees to deliver the specified amount of underlying shares to a buyer at the strike price in the contract, while the seller of a put option agrees to buy the underlying shares.
Mr. Rahim says that writing call options on component stock is more profitable than writing options on an index ETF such as XIU.
«For a portion of the portfolio we are writing call options which allows us to take advantage of the volatility risk premium.
Since this portfolio would generate around 5 % dividend yield, the mutual fund company (yes, DFN is in fact a mutual fund company) trades the underlying securities and writes call options on them too.
If you write the call option (you'll sell the stock), you enter a sell to open transaction.
Sell Call Options — writing a call option is a great way to start letting your stocks produce income, even if a stock pays no dividend.
In addition, the Fund's operating policies will prohibit it from engaging in short sale transactions, writing call options, or borrowing money for investment purposes.
If you are holding some number of shares of a company, write a call option and purchase a put option for equal number of shares of the company with the same expiry date.
A covered call option involves holding a long position in a particular asset, in this case shares of an ETP, and writing a call option on that same asset with the goal of realizing additional income from the option premium.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.
To implement a 25 % covered call strategy, the portfolio writes call options on 100 ABC shares (one contract) and receives $ 200 in premium.

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.
When Cory Silverberg, a Toronto - based sex educator and author, decided two years ago to write a kids book on human reproduction called What Makes a Baby, he considered two options.
Here's a quick review of how they work: An ETF of, say, three stocks writes (sells) call options on the three firms at a fixed «strike» price and for a premium.
I want to hold shares and not turn them for options so I wrote out of the money covered calls for bonus income.
They point to an article that you wrote in March, I think, of 2012 in Policy Options, where you basically said, dirty oil, the tar sands it's called, dirty oil and the future of our country, where you argue that the development of the, as you use the word, tar sands, it's become a political term, by the way, as you know, is basically not necessarily good for the country, in fact it takes jobs away in the manufacturing sector of Ontario.
He also writes about using put and call options in a conservative way to earn more monthly income.
Dividends and option call writing revenue is paid out monthly.
«Buy a diversified portfolio of blue - chip, dividend - paying, large - cap stocks (think Dow 30 type companies), and then write covered call options against them for recurring monthly income,» he said.
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.
By writing options on the securities held in the portfolio, PBP adds income from call premiums at the expense of upside, so returns have differed greatly from those of our benchmark.
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.
In addition to investing in other similar types of vehicles, it will write covered - call options on each of those vehicles.
When you sell a covered call, also known as writing a call, you already own shares of the underlying stock and you are selling someone the right, but not the obligation, to buy that stock at a set price until the option expires — and the price won't change no matter which way the market goes.1 If you didn't own the stock, it would be known as a naked call — a much riskier proposition.
Specific strategies for «leveraging» or increasing stock market exposure may include buying call options on individual stocks or market indices and writing put options on stocks which the Fund seeks to own.
The Episcopal Church, they write, has by and large forsaken its calling as part of the one, holy, catholic, and apostolic Church - choosing instead to be a «liberal yet liturgical» option in American denominationalism.
In concert with PCCC and its partners Democracy for America (DFA) and Credo Action, two freshman Democratic House members, Jared Polis and Chellie Pingree, wrote a letter calling on Reid to include the public option.
The submission option, called Track One, allowed Academy members to «communicate» papers written by non-members and help usher their colleagues» work through the editorial process.
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Specifically, the site provides tools and templates that guide teachers in developing modules — two - to four - week plans that include (1) student performance tasks; (2) a list of the reading, writing and thinking skills students will need to complete the tasks; (3) student activities (called «mini-tasks»); (4) instructional strategies that guide students toward completing the tasks and (5) sample student responses and how those pieces scored on an LDC rubric, as well as an option for teachers to design a summative assessment related to the teaching task.
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