Category: Option Trading
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Should You Trade Covered Calls Around Earnings?
Covered calls are a great strategy for investors looking to generate an income from a stock portfolio—such as retirement investors living on a fixed income. By selling the right to…
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How to Calculate Covered Call Outcomes
Covered calls are one of the most popular option strategies used by both short-term traders and long-term investors. In fact, The Snider Investment Method uses covered calls at its core to generate…
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The Impact of Dividends on Covered Calls
More than 80 percent of large-cap companies in the S&P 500 index pay dividends, along with about 70 percent of mid-cap companies and just over half of small-cap companies. Many…
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How to Select a Broker for Covered Calls
Covered calls are a great low-risk strategy to generate a predictable income from an existing portfolio. By selling call options against stocks that you own, you can generate an income…
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Are Covered Calls Good in a Bear Market?
You’re approaching retirement and suddenly the market moves sharply lower. More than ten percent of your portfolio has disappeared over the past month and you’re concerned that the bear market…
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Weekly vs. Monthly Covered Calls
Covered calls are a great low-risk strategy to generate an income from an existing equity portfolio. By selling call options against an existing equity position, protect your downside some if…
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When Should You Roll a Covered Call?
Covered call options are often pitched as a low-risk way to generate an income on a long-term stock position. While you boost income with a covered call, there can be…
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Tips for Managing Covered Call Positions
A covered call position is a great way to generate extra income from a stock portfolio. While the strategy is fairly straightforward, there are many nuances that can make managing…
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Covered Call Funds vs. Do-It-Yourself Covered Calls
Covered calls can be an excellent way to generate monthly cash flow while reducing your risk investing in the stock market. While covered calls have been available to individual investors…
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Calls or Puts: Which Is Better for Income?
Stock options come in two different flavors, but they can be combined into countless different strategies. Option income strategies are designed to take advantage of time decay to generate a…