Gordon Scott has been an active investor and technical analyst for 20+ years. He is a Chartered Market Technician (CMT). Vikki Velasquez is a researcher and writer who has managed, coordinated, and ...

A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning the stock, you're ...

Covered calls are a very useful tool for portfolio management. For the DG investor, they can also provide additional cash flow to purchase more dividend paying stocks. Many authors have offered ...

Here's an example: Let’s say an investor owns 100 shares of XYZ stock trading at $50. They sell a covered call with a $55 strike price and collect a $2 premium per share ($200 in total). If XYZ stays ...

Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

Derivatives like options can be risky securities to trade especially if you don’t have a strategy. For many traders during the pandemic years, options were used to speculate on volatile stocks. But ...

ETFs offer more convenient ways to access the many benefits of covered call strategies, such as lower volatility.

High yields are one of the main attractions for investors pouring billions of dollars into exchange-traded funds that use options to generate extra income. Among the most popular of these funds are ...

In options trading, an uncovered option refers to a call or put option that is sold without having a position in the underlying stock. An uncovered option can also be referred to as a naked option.

Covered calls generate premium income from stocks you already own. Learn how the strategy works (with a step-by-step example) and understand the risks and downsides before you start. What is a covered ...

Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...