When you write a covered call, you always run the risk of losing your shares.
Just the other day, I closed a P covered call for an 88% gain.
And you know, in our case, in covered call terminology, when you have volatile, that means more income for us.
Taylor sold promissory notes, which paid monthly interest, to HCFC and other investors and used the proceeds to invest in a covered call strategy.
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Use dividend stocks, use covered call strategies, use GICs, use the same things like TIPS and I- Bonds things that will be steadier income payers.
Depending on the strategy, calls can be used to reduce risk (covered call-writing) or to add staggering amounts of risk ("naked" call-writing), so brokers issue options-trading permission only selectively.
Should the covered call contract expire worthless, the premium would represent a 3.80% boost of extra return to the investor, or 22.75% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 8.85% boost of extra return to the investor, or 52.95% annualized, which we refer to as the YieldBoost.
Should the covered call contract expire worthless, the premium would represent a 3.73% boost of extra return to the investor, or 22.32% annualized, which we refer to as the YieldBoost.
If the stock stays flat for the year or goes up, the covered call writer earns 12.4%, assuming the stock was called near the end of the twelve month period.
Though covered call writing is getting more attention as a way to generate returns when a stock isn't expected to rise very much, some investors don't realize that these returns aren't guaranteed.
Alternatively, investors may be engaging other strategies such as covered call selling, or outright call selling ahead of expiration on the view that the options will expire worthless or nearly worthless on Friday as time erosion accelerates.
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If it's so easy to juice returns with a covered-call strategy, why doesn't everybody do it?
Circumstantial evidence that what Wakeem is doing is much harder than it looks: the scarcity of market-beating mutual funds with covered-call strategies.
Deregulation has cut the price of long-distance calls in Japan by 75% over the past decade, allowing telemarketing agencies to expand the area covered by each call-centre.
Of the 30, 000 recommendations covered by First Call, a firm that monitors financial analysts, fewer than 1% advise investors to sell, rather than to hold or to buy.
Most small investors selling call options sell covered calls.
It is the Ibiza the ancient Greeks used to call the 'pine-covered island', a fertile land where almost every patch of soil is filled with trees bearing different fruits - figs, quinces, lemons, carob seeds and almonds - so that the surrounding air is perfumed with their ripening scent.
While these shares will be covered by your portfolio and exercising the 400 call, AAPL will no longer be a part of your portfolio.
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The combined total of covered money substitutes plus currency is what economists call the monetary base, and by definition completely under the control of the Federal Reserve.
We used a simple 46-year lag for the peak in spending of the average household, what we call The Spending Wave (which we covered in a past blog).
Cue bipartisan congressional opposition and industry scare ads urging customers to call their representatives to avert premium hikes and cuts in covered services.
But a passing motorist who parked his truck in the church's covered driveway to get out of the dangerous weather had a close call when the storm struck.
With roughly three times more income than needed to honor our Social Security and debt obligations, and with 97% of Social Security spending during the next 10 years covered by revenues already earmarked for Social Security and the remaining 3% having a legal call on general revenues, why would we ever default on either one?
The plane - call sign Five Konrad-Anton-Richard - sank to the bottom where it was soon covered by the shifting sands.
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By that I mean covered by buildings, roads, car parks, railways, paths and so on - what people might call "concreted over".
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