In this article you will learn how to build a diversified portfolio of multiple asset classes without having to pay a manager The stock indexes including the S&P 500 and the Dow Jones Industrial Average have been rising in 2009 but does this mean investors should be all in stock? According to the most recent … Continued
Protective puts combined with covered calls are a strategy called a collar that can be used by traders who need to limit their risk.
It’s possible to control your risk and improve your returns by selling a call option against a stock or ETF you already own and collect the option premium. We learn how to trade a covered call by walking you through an example and show you some of the common risks associated with this strategy.
Covered calls are an effective strategy, but not all investors are willing to go through the expense and effort of rolling over short calls each month. Fortunately there is a much easier way to execute the strategy for long-term investors.
Many investors trade covered calls on stocks and ETFs, but you can amp up your trading returns by trading covered calls on LEAPS.
Learn how much money you should invest per option trade. This article answers the question for short and long options as well as covered calls.