Category: Covered Calls
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How to Find Stocks with High Option Premiums
Stock options provide traders and investors with a lot of flexibility when leveraging returns or generating income. While there are many different strategies, success often boils down to a consistent,…
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How to Find the Right Covered Call Advisor
Stocks, bonds, and funds are the most popular securities for investors to achieve their financial goals. For example, target-date retirement funds provide an easy way to balance growth, risk, and…
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What Is a Poor Man’s Covered Call?
Covered calls are a popular way to generate an income from stock options, but they require a potentially large upfront investment in the underlying stock. While such an investment isn’t…
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How to Roll a Covered Call
The stock market is inherently unpredictable and even low-risk strategies can be ruined by new information. For example, covered calls provide a convenient way to boost portfolio income, but there…
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Add Covered Calls to Your Dividend Strategy
Many investors have turned to a dividend strategy as a way to generate income in today’s low interest rate environment. Unfortunately, most high-dividend strategies are relegated to specific sectors, such…
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How Option Greeks Affect Covered Calls
The concept of a stock option is fairly straightforward: It provides the right or obligation to buy or sell a stock at a specified time and price. Of course, the…
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How to Construct a Collar Option
Covered calls are a popular way to generate income from an existing stock position, but they aren’t the best choice for every situation. For instance, covered calls have significant downside…
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Buying Protection with a Married Put
The stock market is known for rising during both times of euphoria and fear. For instance, the stock market hit record highs during the COVID-19 pandemic despite extremely high levels…
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How Dividends Impact Option Pricing
Dividend stocks are a popular way to generate income, but they also impact several other investment strategies. For example, dividends impact option pricing. Let’s say that an investor that’s selling…
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Can I Trade Options on an Index
Passive investing has exploded in recent years. Investing in broad-market indexes has surged in popularity and costs less than ever before. You can take this approach to the next level…