blog.poweropt.com
Making Money with Covered Calls Even When the Stock Goes Down | PowerOptions Web Log
Investors in stocks naturally like it when stocks are on the upswing, but don’t like it when stocks are sliding downward. One way to cushion the downside is with an in-the-money covered call investing strategy. Generally, investors consider covered calls as limited return on the upside with a lot of exposure to the downside. However, in-the-money covered calls can provide monthly income while also providing downside protection. Sign up now for PowerOptions 14-day free trial A covered call investing position is entered by selling a call option against an already existing stock or against a stock purchased specifically for entering the covered call investing position. A profit and loss graph for an in-the-money covered call looks like this: See what the stock option experts are doing Sign up now for PowerOptionsApplied 30-day risk free trial As you can see from the profit/loss graph, for an in-the-money covered call, the price...