Smart Rules for Covered Calls Writing

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Writing covered calls is an exceptional options trading strategy to generate consistent monthly income. If you focus on short term contracts that are a little out of the money (OTM), the returns on covered calls are excellent. Writing covered calls on a regular basis is indeed one of the best conservative strategies. If you are willing to accept the risk of giving away your shares (in case the buyer exercises the option), then covered calls writing is a lucrative choice.

The covered calls strategy works well only if you stick to some smart rules:

  • For covered calls writing, select stocks that have strong fundamentals. One of the biggest problems with writing covered calls on stocks that are volatile is the loss, which arises when the stock price crashes. Because of this, you need to choose stocks of companies you think are safe and stable.
  • Carefully set the strike price. In every case, it should be above your net basis. When the covered call option is exercised, you want to ensure you end up with a profit, and not a loss. When writing covered calls, make sure to set the strike price higher than the price that you paid for the underlying security, i.e. the price of the 100 shares. Also, when writing covered calls, understand the “moneyness” of the option. See how it affects the premium as well as the probability of the option being exercised.
  • When the buyer exercises the option, just accept it. You should be willing to give away your shares; it is the risk of this strategy. Of course, you can avoid the exercise by closing or rolling out of positions, but before doing so, analyse the outcomes. Sometimes, letting the covered calls get exercised may prove to be advantageous.
  • Be mindful of the earnings announcements as well as the ex-dividend dates that will come up before the option expiry. Price reaction because of such events can affect the value of the call. The possibility of buyer exercising the option is more before the ex-dividend date. For that reason, be aware of such events.

Covered calls strategy can certainly be fruitful. A little caution is required, however. If required, take covered calls advice from an expert.

If you are in Australia and need advice on covered calls or want to learn moreabout covered calls Australia and other options trading strategies, then Total Options can help. Covered calls experts in Australia at Total Options have years of experience in trading covered calls. Along with the covered calls advice, Total Options even provides options education, which aims at teaching everything about options trading in Australia.

To learn more about covered calls Australia and Total Options, visit

Choosing the Stocks to Write Covered Calls

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Covered calls writing (selling) is one of those popular options trading strategies that many investors, both expert and novice, use to produce consistent monthly income. Covered calls writing is popular for the following reasons:

  1. It is easy to learn, understand and trade
  2. It is a conservative and less risky strategy
  3. It helps produce consistent income

Those who have not heard of the covered call strategy, here is a brief overview: A covered call is a contract, comprising 100 shares of a stock you own. When you write a covered call, you give the right (only right and no obligation) to someone to buy those shares from you at a strike price (a predetermined price), on or before an expiration date (a predetermined date). For selling a covered call, you will instantly get a certain sum of money, which is called covered call premium.

If the stock value rises above the strike price, before the expiration of the contract, the buyer of your contract will exercise the option, and you will need to surrender your shares. In case the stock price does not reach the set strike price before the expiration of the contract, your option expires worthless, and you will retain your shares. You can use these shares again to write covered calls.

Covered call writing is a simple strategy; however, it is not easy to generate good returns consistently. Like any other trading strategies, covered call writing has risks. They are:

  • When the underlying stock’s value takes a sharp plunge, the loss from holding your shares will outstrip the gain from the covered call premium income.
  • When the underlying stock’s value abruptly rises, the buyer will exercise the option, and you will have to sell the shares at the strike price, missing out on the substantial gains that are above your strike price.

Considering these risks, it is necessary to formulate and choose the proper options trading plan. Choosing random stocks to write covered calls, or picking certain stocks based on their high premiums is not a right way to go.

Below are a couple of important aspects to consider while choosing the stocks on which you should write covered calls:

Select stocks with good fundamentals. Stocks with good fundamentals ensure good long-term returns. If you decide to write covered calls only for the purpose of generating consistent income, then you should pick stocks that you think would make excellent long-term investments. No matter how you decide to trade, you can still make a profit; however, a reliable and profitable company with strong fundamentals tends to keep their share prices stable. Keep in mind that you must first own a stock before you can write covered calls on that stock. Therefore, selecting stocks of ordinary and unprofitable companies will only add additional risk to the trade.

Select stocks with good growth prospects. Options written on growth stocks usually have a high premium available than average and predictable companies. The premium is high on growth stocks because such stocks are volatile, and with any news or other excitement about the company, the stocks will shoot up. In order to generate substantial income through covered calls, you will need to draw your attention towards the growth stocks. Not all growth stocks are same; hence, it will be very beneficial if you take some time to do online research and find the best ones.

Using the covered calls writing strategy can be the best way to generate consistent income. Although, they are easy to understand and trade, carrying out successful trades and generating profit on a consistent basis is not easy. Fortunately, these days, there is help available to improve your covered call trades; for instance, the experienced and skilled advisers at Total Options. Expert covered calls Australia advisers at Total Options have vast experience and knowledge that help them give you proper advices that can better the returns on your covered calls. Know more about covered calls Australia advisers at Total Options by visiting

Picking the Best Stocks to Write Covered Calls

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Covered calls writing is the best options strategy for those investors who are looking for a way to generate income in neutral market conditions. It is a conservative, less risky, easy-to-understand and easy-to-trade strategy.

Those who are unaware of the covered call strategy, here is a brief. For every 100 shares that you already own for a certain stock, you can sell (write) someone the right to buy those shares at a predetermined price before a predetermined expiry date. For that, you get a certain amount of money on the spot, which is called a premium. However, remember, you are only selling the right to someone to buy your shares; you are not enforcing any obligation on someone to buy your shares.

Picking the Best Stocks to Write Covered CallsAt the expiration, if the stock surpasses the predetermined price (it is called the strike price), you will have to sell your shares to the buyer of your option contract. As said above, the buyers of your shares have the right; hence, if the buyers wish, they can exercise the contract and buy your shares. In case the stock fails to reach the strike price, which often happens, your option expires worthless, and you will retain the ownership of your shares.

While the strategy is pretty straightforward, it is not always easy to yield good returns consistently. Covered calls writing has two risks:

  • If the price of your stock, against which you have written covered calls, surges up, you will miss on the gains because the buyer will exercise the option and you will have to sell your shares at the strike price, which now is below the current market price.
  • If the price of your stock drops abruptly, the loss from holding your shares will exceed the gains from the premium income.

In the light of this, it is important to choose a good trade plan. Choosing stocks arbitrarily to write covered calls or choosing stocks only because they have a high premium will most likely lead to failure.

Below are two important aspects, for choosing the proper stocks on which you can write covered calls:

Pick stocks with a strong technical. To be successful with the covered call strategy, you do not need expert-level technical analysis skills; however, basic knowledge of technical analysis is helpful. Technical analysis shows how the stock will perform in the short term. Therefore, get some basic understanding of the technical analysis. Online tools and resources are available, so it would not be too difficult.

Pick stocks with pragmatic premiums. When writing covered calls for income, it is essential to pick technically healthy stocks with a good premium. Good premium does not mean high premium or low premium, but pragmatic premium. Option contracts with high premium are dangerous, as they tend to have high volatility. No matter how attractive the returns may seem, stocks with high premiums are unfit for the covered call strategy.

Writing covered calls is an excellent strategy to produce income in flat market conditions. Nonetheless, just because it is straightforward to trade does not mean it is easy to execute it consistently. Fortunately, there are resources available to help improve your returns through covered calls. For instance, check out the skilled advisers at Total Options. The advisers at Total Options specialise in covered calls Australia. They can give excellent ASX options advice that can help improve the returns through covered calls writing. Learn more about Total Options by visiting their site

Covered Calls Australia – Generate Consistent Cash Flow

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It is quite difficult these days for retirees to generate some consistent cash flow. The interest rates are not too attractive, and the yield on the 10-year Treasury bond is substantially below the long-term average. Many retirees today are even purchasing high-yield bonds, bond funds, and dividend-paying stocks in the hope of earning better yield. Unfortunately, the risk/reward ratio in the high-yield bond market is also not good right now–investors may not be getting proper rewards for the risks they are taking. The dividend-giving stocks could prove to be a nice income alternative, but it too depends upon an individual’s risk tolerance.

Covered Calls Australia – Generate Consistent Cash FlowThere is one strategy that many retirees (and investors too) often overlook, which by the way can help generate consistent cash flow. It is the covered calls strategy. Writing (selling) covered calls in Australian market against dividend-paying stocks can generate steady cash flow. However, remember that options trading in Australia is not suitable for all investors. The major drawback of writing covered calls Australia is that investors are limiting their upside potentials of their stock by giving someone the right to call (demand) it from them before the expiration date or at a strike price. Nevertheless, if the consistent cash flow is the main objective, writing covered calls Australia is worth considering.

Volatility is a crucial motif for investors to understand. Two totally different stocks may have same returns, but have entirely different volatility characteristics. The two kinds of volatilities that investors writing covered calls need to understand are implied volatility and historical volatility. The implied volatility is determined by the price of the option contract, and it will change with different expiration dates and strike prices. The historical volatility, also known as statistical volatility, is a measure of how unsteady the stock has been, and it can be calculated over different time-frames.

When investors are considering writing covered calls for income, they should be careful with the stocks that have high option-premiums. Options with high premiums may have a good return potential, but they are expensive and their implied volatility is high. A high implied volatility suggests that the market is expecting a wild price movement; perhaps because of some news, such as a legal case is about to be settled, or an earnings report is due.

No matter how attractive those high premiums may seem to be, retirees should stay away from such option contracts. Instead, they should buy stable, large-cap stocks that pay a decent dividend and have low volatility. The option premiums, of course, may seem mediocre, but at least, the volatility is low, which is important to generate steady cash flow.

Overall, writing covered calls is a good strategy to generate consistent cash flow. Retirees should stick with the large-cap stocks so they can get the best performance.

Tips on How to Use Covered Calls Australia Successfully

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Writing covered calls in Australia can indeed produce consistent monthly income for investors. A covered call is an option trading strategy where investors write “sell” call options against the shares they already own. Usually, a call option consists 100 shares of a particular stock. In exchange for writing call options, investors receive a premium. The premium, however, comes with an obligation; if the buyer exercises the call option, the investor is obligated to deliver the shares to the buyer.

How to Use Covered CallsFortunately, investors already own the underlying stock, so their potential obligation is very much “covered.” Because the obligation of delivering the shares if the buyer exercises the option is covered, this strategy acquires its name “covered call” writing.

Covered call writing in Australia is a fairly conservative strategy. Nevertheless, there are risks associated with it. With proper ASX options advice, however, covered call writing risks can be minimised or averted. Here are three tips on how to use covered calls Australia successfully.

Keep market volatility in mind

Stocks that exhibit medium implied volatility are the most suitable for the covered call strategy. In case implied volatility is low, the premium that investors get will also be probably low. The premiums will be high if the implied volatility is high, but there is a trade-off.

If the implied volatility is high, the probability of the stock to move considerably in either direction is also high. It could mean that investors have a higher chance of taking a loss if the stock drops significantly, or of having their stock called if the price increases. With covered call strategy, it is to be remembered that if the price rises (and exceeds the strike price), the call buyer can exercise the option and demand the stock.

To be safe, investors should consider the stocks with options that exhibit medium implied volatility. Medium volatility should yield enough premium to make the trade worthy. It also eliminates the big risks that are associated with high-volatility stocks.

Plan with what to do if the stock goes down

Investors normally sell a covered call on a stock on which they are bullish in the long-term. It is really helpful to have a plan in place if the stock goes downward. Nobody likes it when stocks plummet–right? Investors have more choices than they think, however. Many investors assume that writing a call lock them in a position until the call expires. This is not true. Investors have the choice to buy the call and remove their obligation to deliver the stock.

If the stock has fallen since the investor sold the call, he or she may be able to buy the call back; that too at a cost lower than the initial sale price. This way, an investor can make a profit on the option position. Doing this buy-back also removes an investor’s obligation to surrender the stock if exercised. Investors also have the option to dump their long position and prevent further losses in case the stock continues to drop.

Consider buy-writes

If investors are really into covered calls writing, they need to consider an excellent strategy called “buy-write” first; with this strategy, they can buy the stock and write the call option, against that stock, in a single transaction. The strategy of buy-write is not limited to convenience only. One thing this buy-write strategy offers is an instant income, in the form of an option premium. Besides, such options often expire worthless; hence, the investors will get to keep the premium, as well as the ownership of the stock. In the bull market, buy-write strategy can underperform, but in flat and bear markets, the strategy is one of the best strategies for investors.

To conclude, covered calls can be an excellent strategy to generate consistent income. Normally, investors write covered calls on stocks, on which they are long-term bullish. Covered calls are useful on stocks that are stagnant in the short-term. Of course, there are some risks associated with covered calls, but with proper covered calls advice, risks can be minimised.

Ways to Use ASX Options as a Strategic Investment

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Trading ASX options as a strategic investment (investment made with the aim of generating safe, consistent returns), is very important for traders. Options trading in Australia provides traders excellent strategies that help boost their profits, decrease costs and extend trading approach. Even though many investors are reluctant of using ASX options, it is crucial to understand that these financial derivatives are no more or less risky than any other form of trading. ASX options are excellent financial derivatives that, when used safely, can be very beneficial to your portfolio. Another good thing about ASX options that most people do not realise is that they are short-term trading derivatives, and so it requires significantly less technical analysis than ordinary stock trading. Nevertheless, it is necessary to have some technical analysis skills for trading options as it can help predict the market movement and movement’s magnitude.Ways to Use ASX Options as a Strategic Investment

Here is how you can use ASX options as a strategic investment:

Recover some of the cost of your share market investment

If you already own some shares, you can slowly recover the cost of the shares by selling call options against them every month. This strategy is called covered call writing. Covered calls Australia are effective, and over a year, it is possible to write (sell) covered calls several times that you can in the course of time pay off everything you invested in the shares. Because you will already be having enough information about your shares, the technical analysis for covered calls Australia will not be complex.

Buy stock for half price

Buying deep in the money (DITM) options for a short term momentum trading is an excellent way to buy stocks at half the price. If you see possible growth of the stock over the next couple of months, you can rip the benefit from the strong delta of the option and purchase the rights to it at a substantially reduced premium.

Get paid to buy stocks

If you have a certain stock in mind that you would like to own, buy do not want to buy it at a higher market price, then the strategy of selling naked put options may prove to be useful. Every month, you sell put options against a stock, but at a strike price or exercise price that is lower than the price at which the stock is currently trading. In case the price of stock goes up, your put expires worthless, and you retain the money. If the price drops to your set price, you can buy it and wait to bag profit as the stock recoups back up. Once you have bought the stock, you can sell covered calls to further reduce the price you paid for it.

Profit from unstable markets

Do not sit idle in a volatile market. Look at the chances presented in such a market. Options strategies such as buying strangles or straddles, selling credit spreads, dealing in butterflies, etc. can yield excellent profit in a volatile market.

Selling the future

Using the credit spread strategy is an excellent way to make a steady profit of about 10% per month. Identify the market trend, and sell credit spreads every month to build your portfolio.

Options trading in Australia can be risky, but with the right approach or with a good ASX options advice, risks can be minimised and profit can be made. Today, a range of options trading strategies is available through which traders can yield excellent returns in almost any market condition. If you want to gain more insight on different ASX options strategies, including covered calls Australia, butterflies, and others, expert advisors at Total Options can help. Get in touch with them at

Covered Calls Australia – An Excellent Strategy That Every Investor Can Use

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Every day, transactions of billions of dollars happen on the Australian Securities Exchange (ASX). Some of thCovered Calls Australia – An Excellent Strategy That Every Investor Can Useese transactions are made by big financial institutions while other transactions are made by well-known insurance companies. One of the techniques used by the gurus of Australian share market to generate consistent income is writing (selling) covered calls. Writing covered calls is a simple technique, which is eminent among institutional traders, but a mysterious one to the novice or self-directed investor despite being lucrative and even deemed “easy” by ASX itself. In other words, you do not need to be a share market genius in order to learn and try writing covered call.

Most investors probably invest in share market in order to yield consistent monthly income from their portfolios. Instead of investing in popular mutual funds or purchasing and holding certain stocks hoping for a rise in their value, why not devote some proportion of your account writing covered calls every month? The versatility of covered calls Australia can generate consistent monthly income for any investor with a trading account. In order to generate consistent monthly income with covered calls writing, however, obtaining the proper options trading education is vital.

Here is how covered call options trading in Australia works:

If an investor has 1000 shares of Telstra stock at A$ 5.00 per share and is ready to sell those for a profit, that investor can sell or give away the right to someone to buy their shares at A$ 6.00 per share. In the terms of covered calls Australia, the investor would be selling the right (with obligation excluded) to someone to purchase their Telstra shares at the A$ 6.00 strike price. The income that the investor gets from selling the rights to someone is called premium. In our case, the premium for writing a thirty-day option is A$ 1.00 per share.

Like any other investment strategy, there is a downside to writing covered call options. If Telstra shares should rise to A$ 9.00, in the above case the investor would be obligated to give away or sell their shares at A$ 6.00. If Telstra shares never cross A$ 6.00 until the date when the option expires, the investor is eligible to keep their shares as well as premium income. The key to successful covered calls Australia trade is to know which particular stocks to hold for writing covered calls and which ones to invest in for the long period.

For quite some time now, writing covered calls in Australian share market has been a top technique used by professional investors to generate guaranteed monthly income. You too, no matter if you are a novice, can try writing covered call option in order to create steady monthly income. With covered calls Australia, risk is low, and income is consistent.

To know more about covered calls Australia, contact the vastly experienced options trading experts at Total Options They can give you deep insight on covered calls and can also provide excellent Australian share market advice.

Important Criteria for Selecting the Best Stocks on Which to Write Covered Calls

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Writing covered call is one of the most popular strategies that many expert traders as well as traders new to options trading use to generate income. The strategy is popular for two reasons:

  1. It is a conservative strategy
  2. It is easy to understand and trade

For those who are unfamiliar with the covered call strategy, it works in the following manner. For every 100 shares of a particular stock that you already own, you can sell someone the right (no obligation) to buy those shares from you at a certain fixed price (strike price) before an expiration date. The amount that you get from writing (selling) the call is called premium.

At the expiration, if the stock ends up above the strike price, you will be obligated to give away your shares at the agreed price. If the stock ends up below the strike price, the option expires as worthless, and you will be able to retain the ownership of your stock, which you can again use to write the covered calls.

While covered call writing is a straightforward option strategy, it does not mean it is easy to make excellent returns consistently. The strategy has two major risks:

-          When the price of the underlying stock takes a big leap, you will miss out on gains above your strike price because the buyer will exercise the option and you will have to sell at a price, which is below market price.

-          When the value of the underlying stock falls substantially, the loss from holding your stock will probably exceed the gain from the premium income.

Because of such risks, it is crucial to select a proper trade plan. Randomly selecting stocks on which to write covered calls or selecting certain stocks simply because they have high premium will probably lead to failure.

Here are two important criteria for selecting the best stocks on which to write covered calls:

Important Criteria for Selecting the Best Stocks on Which to Write Covered CallsSelect stocks with good technical. There is no need for you to become a technical analyst in order to be successful with covered call strategy, but knowing the basics of technical analysis is helpful. If you are going to be making short-term trades, it is essential to have some kind of basic understanding of technical analysis or access to some tools and resources, which can help you to determine the short to intermediate term technical health of a stock. By knowing the technical health of a stock, you can also determine its covered call suitability.

Select stocks with realistic premiums. If you are going to be writing covered calls for income, you will want to pick stocks (technically healthy) with a good amount of premium so that it be worth your while. Good premium does not mean high premium, but realistic premium. Options with very high amount of premium are dangerous ones. They have high volatility and uncertainty. No matter how big returns they yield, these types of stocks are not fit for reliably successful covered call strategies.

Covered calls strategy can be an excellent resource to generate income. However, just because it is easy to understand and to trade does not mean it is easy to execute on a consistent basis. Fortunately, there are various resources available that can help improve your covered call returns; for instance, the experienced advisers at Total Options. Covered calls Australia advisors at Total Options have the skills as well as vast experience that help them give you excellent advices that can improve the performance and returns on your covered calls. Know more about them by visiting their website

How Covered Calls are Beneficial

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How Covered Calls are Beneficial

Writing covered calls can be an excellent strategy to increase investment income. It is a conservative option trading strategy whereby investors write (sell) call options against the holding of the underlying shares. Using the covered calls strategy, the investors get to earn a premium by writing (selling) calls. At the same time, they also get to enjoy all the benefits of underlying share ownership, such as voting rights and dividends. To understand how a covered call is beneficial, look at the following scenarios.

Before looking at the scenarios, let us first set up a situation.

The Situation

Suppose the shares of ABC Company are trading at $15. So you purchased 500 ABC shares for $7,500 ($15 x 500). Now you decide to employ a covered call strategy. So by employing a covered call strategy, you sell someone the right to purchase your ABC shares for $15.50 for the few days for a premium of $1. This means that you are selling a call (1 call equals 100 shares) with a strike price of $15.50 and a premium of $1. Your transaction and cash flow will be:

Your Transaction

Your Cash Flow

You buy 500 shares of ABC for $15

- $7,500

You sell 5 calls (each for 100 shares) of ABC at $15.50 for $1 premium

+ $500

 So your initial investment is $7,000 ($7,500 – $500).

Now let us look at the different scenarios that could happen at the call expiration day.

Scenario 1

At the expiration day, the share remains unchanged at $15. Your calls will expire worthless because why should anybody buy the shares for $15.50 if they are available in the market for $15. Now your transaction and cash flow will be:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $15 (expire day value)

+ $7,500

 So at the end, you still made $500. How? Well, your initial investment was $7,000 ($7,500 for 500 shares less $500 premium on covered calls) and you sold your investment for $7,500 (500 shares x $15 (share price at expiration date)).  That gives you a profit of $500 on your initial investment or say, just over 7% return. This was just without any stock movement. Let us look at scenario 2 where the share price increases.

Scenario 2

At the expiration day, the share price increased to $16. You are being “called” from the owner of the options you sold—you are obliged to sell your ABC shares at 15.50 (your strike price). Ok, now let us again look at the return:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $15.50 (expire day value)

+ $7,750

This results in a profit of $750…your initial purchase price $7,000 (premium included) minus sales price $7,750. It is almost 10.7% return on investment.

What if the share price drops? Well, let us look at scenario 3 for that.

Scenario 3

At the expiration day, the share price dropped to $14.50 So now your return will look like:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $14.50 (expire day value)

+ $7,250

 Adding up the above figures, you still make $250 profit, even though the price of your shares dropped. You will keep on making profit as long as the share price remains above $14.

Looking at the above three scenarios, opting for covered call strategy is not a bad idea at all. Further, if you have an expert covered calls advice, you can substantially increase your investment income. If you want the best covered calls advice in Australia, then get in touch with Total Options. They have a vast experience in options trading in Australia. They can also educate you on how options trading and covered calls work in Australia.

Understanding The Risks And Benefits Of Covered Calls

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For those who are not too familiar with common trading jargon, you may not readily understand the concept of the covered call strategy and its function in trading activity. To shed some light on it, basically, it’s a low-risk strategy where an investor or trader holds a long-term position in an asset and writes/sells call options on that particular asset in hopes of generating a bigger income from it.


However, like all strategies for trading and investments, using covered calls has both benefits and risks. It’s imperative to know what they are so you can take a step back and analyse your trading situation before applying this strategy.


The most important advantage is that compared to all the other known low-risk strategies out there, it’s said that becoming an expert at covered call writing can secure the highest profit – much, much higher than if other strategies were used. Everybody’s into trading to harness wealth, so this advantage is surely the most attractive.

The second benefit covered calls offer is the way traders actually have more control over the outcome. Writing a call allows traders to really examine the conditions their stocks are dealing with and determine the best decisions on what should be done, say, if the stock’s value declines after the traders have entered a position, or if the price of the stock appreciates. The trader who has mastered covered call writing has that great opportunity to fortify his wins and mitigate losses.


As for the risks or disadvantages, profit potential, when investors have established a covered call position, is automatically limited to the strike price (the price at which a put or call option can be exercised). So, if you were too hasty in writing a $70 call on a stock that you originally purchased at $65, and due to an unexpected twist of events the market dictated that that the new value of the stock is already up at $85, you have no other option but to sell at the price that you have written. Instead of a $20 profit, you limited yours to a mere $5.


And the second risk is that due to the simplicity of the move, a lot of investors are easily convinced that they already know everything that needs to be considered in employing covered calls, only to realise that they’ve traded too soon. It takes at least three to four months to fully explore the capabilities and potential of this strategy.


Therefore, for those who want to use covered calls to help themselves reach an advantageous position as traders or investors, it’s crucial to get some mastery in it. This is possible through persistent study, practice, and proper coaching from respected names in the trading industry. In time, they can truly expect to make the strategy work optimally for them in securing trading success.