How to Calculate Covered Call Outcomes

Covered calls are a great strategy for generating an income but it’s important to understand the risks and rewards.

The Impact of Dividends on Covered Calls

Learn how dividends impact options and some important considerations for investors using covered call strategies.

Best Option Trading Strategy for a Portfolio Paycheck

by Anthony Obey There’s an option trading strategy that’s practically a hidden reservoir of monthly income generation lying in your own investment portfolio’s proverbial ‘backyard.’ Becoming aware of this strategy and learning how to use it empowers you to start generating real income from your portfolio, quickly. While you may not have known about this great opportunity to put your …

Myths and Misconceptions about Exchange Traded Options

There are a variety of long-standing myths about options that need to be dispelled. The most widely held are: 1) options are too risky; 2) they’re too complicated or you’re not smart enough to use them; 3) you cannot use options inside of an IRA account; and 4) options on General Electric, for example, are no different than the exotic, …

Can you trade options in an IRA?

I did not hear it myself, but I am told Ric Edelman, a big-time money manager and radio talk show host, said in his 12/2/07 radio show that you cannot use options in an IRA account. This is according to one of my readers / listeners, so if I have this wrong, I apologize in advance. But I thought it …

Options Find a Place in Retirement Accounts

The traditional view of options can best be summed up in one word – risky. That has always frustrated me, mainly because it is such a persistent myth. Options can be risky, particularly when they are used to place a bet on the future direction of price. If that’s what you want to do, why don’t you just go to …

Using Options to Create Retirement Income

When most people think of options, they think of trading options – that is, using them to bet on the future direction of price. That is not how we use them, and it is not how a slew of new closed-end funds are using them either. There have been a sizable number of IPOs of closed end funds since 2004 …