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Make More Money with Covered Calls and With Less Risk | PowerOptions Web Log
Mention covered calls and many investors think limited upside and big exposure to the downside. But, it’s possible to make more money with covered calls and do it with less risk. Covered calls investing involves selling a call option against an existing or purchased stock. The inherent nature of covered calls provides less risk than simply owing the stock outright, as a covered call investing position has downside protection and a stock does not. The initial time value and the amount a covered call investing position is in-the-money determine how much downside protection a call option provides. The larger the time value and the more the covered call investing position is in-the-money, the more downside protection provided. Sign up now for PowerOptions 14-day free trial As for making more money with covered calls, we will examine an actual trade entered by PowerOptionsApplied‘s Titanium TradeFolioTM. See what the stock option experts...