We've all heard the saying, "the trend is your friend." This is true when the trend's moving in your direction. Over the course of holding stock, investors expect it to rise over the long term. But keep in mind that stocks rally, pull back, rally, and pull back over and over again. Obviously, if you own a stock, you won't profit when it moves down or sideways in the short term. So what can you do? The answer might be to sell covered calls. By selling a covered call, you could generate a small amount of income and help reduce volatility. In this short video, we'll discuss the basics of covered calls. You'll learn what a covered call is, how to analyze its risk profile, and gain a better idea of whether this strategy is right for you portfolio. Let's start by defining what a covered call is. A covered is when an investor sells a call option contract against an underlying stock position. When you sell or short a call option, you sell someone else the rig...
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