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Last Updated: May 6, 2008 - 6:47:21 AM |
Call Options
Covered Calls Part III - Market Timing
In Part I we discussed the advantages of the Covered Call Strategy and how it is possible to make a lot of money. In Part II we analyzed the risks and potential downside of this trading strategy. In Part III we will examine the best market situation to put on Covered Call Trades and when to avoid this strategy.
Nov 11, 2006 - 8:53:00 PM
Call Options
Covered Calls Part II - The Downside
This is the second of a three-part series on the Covered Call strategy. In Part I we discussed the Upside and the profit potential for the trade. In Part II we will discuss the risks associated with Covered Call trading.
Nov 11, 2006 - 8:51:00 PM
Call Options
Covered Calls Part I - The Upside
Covered Call writing in all likelihood, is the most common and popular Option strategy employed today. In keeping with that popularity, this article is the first of three that will discuss the Upside in Part I, the Downside in Part II, and Part III an assessment or Evaluation of the strategy.
Nov 11, 2006 - 8:48:00 PM
Call Options
Stock Options: Covered Calls
In a covered call trade, you are buying the underlying stock shares and selling call options against it. This strategy is best implemented in a bullish to neutral market where a slow rise in the market price of the underlying stock is anticipated. This technique allows traders to handle moderate price declines because the call premium reduces the position's breakeven.
Nov 11, 2006 - 8:45:00 PM
Call Options
Buying Calls
The long call strategy provides unlimited profit potential with limited risk. It is best used in a bullish market where a rise in the price of the underlying asset above the breakeven is anticipated. Zero margin borrowing is allowed. That means that you don't have to hold any margin in your account to place the trade. You only pay the option's premium-a fairly small investment depending on the market you choose to trade.
Nov 11, 2006 - 8:42:00 PM
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