http://blog.wenxuecity.com/myblog/70211/201702/29745.html
Sunday, February 26, 2017
Covered Call In Depth
https://www.borntosell.com/ provides a good resource on covered call.
What I learnt from this site is as follows:
1. Basics: If you think the stock will decline, you should be looking at ITM options. If you think the stock will stay about where it is by the time the option expires, then ATM would be a good choice. And if you think the stock will go up then an OTM option will allow you to capture some of that stock appreciation in addition to the option premium you receive
2. Income oriented: Should sell deep in the money call. A good starting point is to S&P 500 stocks that pay dividends.
https://www.borntosell.com/covered-calls/for-income
http://coveredcallsadvisor.blogspot.com/ is another good resource. It has the free recommendation.
What I learnt from this site is as follows:
1. Basics: If you think the stock will decline, you should be looking at ITM options. If you think the stock will stay about where it is by the time the option expires, then ATM would be a good choice. And if you think the stock will go up then an OTM option will allow you to capture some of that stock appreciation in addition to the option premium you receive
2. Income oriented: Should sell deep in the money call. A good starting point is to S&P 500 stocks that pay dividends.
https://www.borntosell.com/covered-calls/for-income
http://coveredcallsadvisor.blogspot.com/ is another good resource. It has the free recommendation.
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