Covered Call Strategy - Best Way To Use Covered Calls

http://www.OptionSIZZLE.com A lot of investors or novice traders are just unaware of the many possibilities options provide. Most start with just trading shares of stock in companies and never expand their knowledge outside of that realm. One of the most common strategies taught to most investors and traders starting out in options is called the covered call strategy or buy write. VISIT OptionSIZZLE.com FOR OUR 5 STEP FORMULA TO MORE PROFITABLE OPTION TRADES http://www.OptionSIZZLE.com SUBSCRIBE TO THE YOUTUBE CHANNEL! http://www.youtube.com/subscription_center?add_user=optionsizzle LET'S CONNECT! Facebook ► http://facebook.com/optionsizzle Twitter ► http://twitter.com/optionsizzle OptionSIZZLE ► http://www.optionsizzle.com Google+ ► http://gplus.to/optionsizzle A covered call strategy utilizes both stock and that same underling's option contract. This strategy is taught to help most long term investors enhance their return on investment buy selling call option contracts. The covered call strategy is pretty simple to create in your brokerage account. Lets say you own 1,000 shares of that company. Since one option contract represents 100 shares of that underlying issue, you would want to sell 10 call option contracts. You would typically sell an call option contract in a higher strike from where the current prices of the stock is trading at. Since you sold the option contract you take in what is called an option premium for your troubles. Two things can happen in during the covered call strategy. 1) The price of your stock goes higher and goes above the strike of the call contract you sold. What will happen is the stock will get "called" away or sold at that option contract strike you sold and you collect the profit from when you purchased the stock and the price it was "called" away at. You will also take in the premium you collected when selling the call option contract on top of the profits you had already have from the stock moving higher. 2) The price of the underlying does not move into that strike of the call option you sold by expiration of that option. You still own the stock of the company and you also have the premium you collect from that option contract. This is a win win situation because most would just hold the stock while waiting for it to move higher. If the price of the stock does move higher and you get the stock "called" away while doing the covered call strategy. You still win by locking up profits and then going back out and buying shares again and selling option contracts about that. If you are interested in seeing how to exactly do this with a twist, then you will want to watch the video below. I share with you my best information on using the covered call strategy that most people don't even think of. Let me know if you have had success with the covered call strategy below. If not, let me know if this interests you and something that you will start to look for. http://www.OptionSIZZLE.com

Comments

1. when I use stock out when I deal with my stock I deal with Merrill Lynch thought I wet rep for a reputable stop dealer you never you never put all your eggs in one basket that's a good way of losing your money because you gotta remember stocks is one of these things that you can lose big time off so you have to know what you doing when you deal with the stock market it's not like the banks the federal government will guarantee that money bag the stock market will not but if he got a little extra and you want to put a little bit into the stock market I would advise you to talk to your Banker are reputable
2. sort of wanders.....
3. found this today... great video. can I ask what video capture software are you using because it the video is smooth and the audio is awesome! What mic are you using? Thanks!
4. If your looking for the covered call discussion, just skip to 4:10
5. mww was at $ 7.33 and the stock went up to $ 7.63 for Monday Oct 1.....nice job.....