There’s an overwhelming belief among the investment public that stock options and derivatives are risky and hard to understand. In general terms, I agree. Many times they are both of these, sometimes to the extreme. But there is one facet of options trading that you’ll definitely want to know about, Covered Calls. The proper execution of an actively managed, covered call strategy has the potential to limit risk while boosting your returns.
I’m struck by how much poor information regarding covered calls is on the internet, (more…)