Sentences with phrase «writes covered calls»

He has a diversified holdings of dividend stocks that he writes covered calls on for extra income.

This bad boy holds a bunch of gold and mining stocks and then writes covered calls against them (I went over covered calls here if you're not sure what they are).

«What you're doing is trading some potential return for some certainty,» says Alan Fustey, who regularly writes covered calls for his clients.

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.

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.

I'm keeping my position in Target and will write covered calls while I wait to collect the underlying dividend.

«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.

At least you can write covered calls!

Writing covered calls on stocks that pay above - average dividends is a strategy that can be used to boost returns on a portfolio, but it carries some risk.

If you would like to learn how to write covered calls to generate recurring monthly income, sign up for our free newsletter or a 2 week free trial of our service.

So, the downside risk (in the technical sense) is exactly the same for going long and writing covered calls.

Learning how to write covered calls is easy, and you've come to the right place.

Writing covered calls is a time honored way to increase yield from stocks and ETFs you already own.

@Michael — I'd say writing covered calls will reduce the downside risk, but not by very much.

Writing covered calls is an income - oriented strategy.

But there is also a zero inventory, highly liquid kind of passive income opportunity: writing covered calls on stocks you own.

You can also write covered calls in most retirement (e.g. IRA) accounts.

Apologies to more experienced investors, but this is Covered Call Writing 101, aimed at beginners who have never experienced the profit of writing a covered call before.

There's nothing wrong with that but it's the same as starting with a covered call, have it expire out of the money, and then writing another covered call at the same strike.

Writing covered calls is a great way to boost your yield on stocks you already own, and involves a lot less risk than most investors think.

By writing covered calls, then, you're giving up much of a stock's upside potential in exchange for income today.

But no matter which strike or expiration date you choose, writing covered calls against these high yielding «dogs» will increase their yield and lower your portfolio volatility.

There are many factors in choosing a stock to write covered calls against but many conservative investors find that large market cap, blue - chip, dividend - paying stocks are a good place to look.

For example, if you want more income from the stocks you own, investigate strategies such as writing covered calls.

(see blog article How To Write Covered Call Options)

We'll also show a brief video on how to use software to quickly find good dividend stocks to write covered calls on.

If you need more help on how to write covered call options, there are additional examples in our covered call tutorial.

Those tech titans have been good to own and good for writing covered calls (as long as you can stomach the volatility — which, of course, is the source of their fat option premiums).

The BMO Covered Call Canadian Banks ETF (ZWB) is an actively managed fund that holds Canadian bank stocks or units of the BMO S&P / TSX Equal Weight Banks Index ETF (ZEB) and writes covered call options on the underlying securities depending on market conditions.

We argue that when writing covered calls against the 20 underlying positions in the portfolio on a monthly basis to generate additional income, that doing this in a WRAP account can be very advantageous and offer a competitive total return based on the amount of risk that is being taken.

My biggest mistake was putting a ton of money into one stock in order to write covered call options on it.

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.

Since you need to own 100 shares of something to write a covered call on it, getting proper diversification in a small account that only owns stocks can be difficult if not impossible.

When is the right time to write covered calls?

And, yes, we will be writing covered calls across earnings announcements and new product announcements.

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.

To construct a collar, buy stock, write a covered call option, and buy one put option.

While the reward is generally limited to the premium received minus trading costs, an investor who writes a covered call continues to own the underlying stock.

Let's say I write a covered call and a buy separate put option.

Most investors think of options as being a very high risk investment but when it comes to writing covered calls you can reduce the risk exposure and can use this strategy to generate short - term income.

With the stock market at all - time high, this environment is ripe for profiting by writing covered calls.

Investors can write covered calls and trade calls and puts for only $ 6.95 (plus $ 0.75 per contract).

Also, when writing covered calls, you could be forced to sell your stock at a price lower than the current market price and lose future potential gains.

I have been using, with good results, the guidelines from your «Quest For Yield Program»; to write covered calls each month.

I suggest writing covered calls as your entry point into the options universe, but once you understand what you are doing, it's best to move on to another of my six recommended strategies.

It writes covered call options on 33 % of the portfolio, has a P / E 23.9 and dividend yields 8.29 %.

If you would like to learn how to write covered calls for income, sign up for our free newsletter or a 2 week free trial of our service.

Writing covered calls for income is a great way to increase your portfolio yield.

You need to be prepared to sell your one hundred shares for the strike price at any point in time after you write the covered call.

Two traits that are critical in selecting firms to write covered calls against are price / earnings ratio and dividend yield.