Category: Option Trading
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The Risk of Covered Calls: What You Need to Know Before Trading Options
Covered calls are one of the most popular options strategies for generating extra income. They’re often considered less risky than many other option strategies, but that doesn’t mean they’re risk-free.…
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Starting a Position with a Covered Straddle
There are many different option strategies that investors can use to generate an income. While covered calls generate income from an existing long stock position, a covered straddle can be…
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Calls or Puts: Which Is Better for Income?
Stock options generally fall into two main categories, but they can be combined in countless ways to create diverse strategies. Option income strategies are designed to capitalize on time decay…
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Generating Income with Cash Secured Puts
Options are often seen as speculative instruments for traders, but many investors use them to generate income. In fact, the most sophisticated option traders use them to reduce risk, limit…
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How Do Cash-Secured Puts Work?
Options are often associated with speculation, but many investors use them strategically to generate income or achieve long-term goals. One such approach is the cash-secured put, which offers an alternative…
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Covered Call Pros and Cons
Covered calls can be a powerful way to earn extra income from stocks you already own. Like any strategy, they come with trade-offs. Before diving into how they work, it…
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Calls and Puts: The Basics of Trading Options
When most people think about investing, they think about trading stocks, but that’s not necessarily the only (or best) choice for those looking to generate income from an investment portfolio.…
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Best Option Trading Strategy for a Portfolio Paycheck
There is an options trading strategy that offers a powerful, yet often overlooked, opportunity for generating consistent monthly income. An increasing numbers of investors use this strategy – and thousands…
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Can Option Trading Really Give You Safer Retirement Income?
Option trading may sound like a risky endeavor, but like most investments, it’s only as risky as you make it. After all, stock investing can be incredibly risky if you’re…
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Are Covered Calls Good in a Bear Market?
Image this scenario: You’re approaching retirement and suddenly the market moves sharply lower. More than ten percent of your portfolio has disappeared and you’re concerned that the bear market could…