Tag: Covered Calls
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Using Covered Calls to Generate Retirement Income
Many retirees draw down their portfolios to finance their retirement, but generating income can help stretch your savings much longer. While dividend stocks and bonds are popular income investments, covered…
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How to Protect Gains with Options
Most investors are happy with unrealized gains, but there’s always a risk of loss until they sell. Fortunately, there are a couple of options strategies that you can use to…
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5 Mistakes to Avoid When Selling Covered Calls
Here’s a hard truth: not every investor succeeds at building a profitable portfolio. Sometimes it’s the market’s unpredictability, but more often it’s because newer investors lack a clear strategy. In…
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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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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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3 Covered Call Examples & the Outcomes
Learn how covered calls work by looking at three scenarios illustrating the best to worst cases – and tips for managing positions to mitigate risk.
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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…