Category: Covered Calls
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How to Construct a Collar Option
Covered calls are a popular way to generate income from an existing stock position, but they aren’t the best choice for every situation. For instance, covered calls have significant downside…
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Buying Protection with a Married Put
The stock market is known for rising during both times of euphoria and fear. For instance, the stock market hit record highs during the COVID-19 pandemic despite extremely high levels…
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How Dividends Impact Option Pricing
Dividend stocks are a popular way to generate income, but they also impact several other investment strategies. For example, dividends impact option pricing. Let’s say that an investor that’s selling…
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Can Option Trading Really Give You Safer Retirement Income?
Option trading may sound like a risky endeavor, but like most investments, it’s only as risky as you make it. After all, stock investing can be incredibly risky if you’re…
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Can I Trade Options on an Index
Passive investing has exploded in recent years. Investing in broad-market indexes has surged in popularity and costs less than ever before. You can take this approach to the next level…
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Can I Trade Options in an IRA?
Many individual investors wish to utilize options trading to generate income but are unsure of whether or not they can trade options in an IRA. Most individual retirement accounts (IRAs)…
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Are Buy-Write Funds a Good Hedge Against Volatility?
There are many different ways to minimize volatility in a portfolio, including diversification into multiple asset classes, but buy-write funds have become a popular alternative for stock investors looking to…
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Selling Call Options: Popular Strategies & Alternatives
Stock options may be risky and unfamiliar for many traditional investors. For example, they may be uncomfortable with the idea of losing their entire investment or be unsure of how…
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How to Find Covered Call Opportunities
Covered calls have become one of the most widely used option strategies for generating income. While simpler than most option strategies, finding the right covered call opportunities can be challenging—especially…
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The Importance of Asset Allocation
Most people are familiar with asset allocation even if they don’t recognize the term. For example, the SEC’s Beginners’ Guide to Asset Allocation uses the example of a street vendor selling both sunglasses and…