Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...

We’ve seen that a PutWrite strategy using options on the Nasdaq-100 index (ticker NDX) can generate returns which are similar to the Nasdaq-100 index but which display substantially less risk as ...

Most traders don’t struggle with covered calls because the strategy is broken. It’s because they start in the wrong place: ...

In options trading, an uncovered option refers to a call or put option that is sold without having a position in the underlying stock. An uncovered option can also be referred to as a naked option.

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. A covered call is an options ...

Learning how to trade options helps expand your trading choices. It’s a powerful tool you can use to speculate on and hedge against market moves. But how do you know which strategy to use in a certain ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). A covered writer is an investor or trader who holds the underlying security as a ...

Selling (writing) options can be a great way to augment income, especially when market averages are close to their highs. Writing covered options is a much more conservative strategy than buying long ...