One of the keys to covered call writing success is knowing how to determine support and resistance levels. A support level is a stock price low that the price has hit and recovered from to advance back up due to more buying than selling of shares. This is referred to as the trading floor until …
Support and Resistance levels for the Covered Call Writer Read More »
Small-caps have been on a tear in Q2 clearly outperforming its larger counterparts. President Trump’s protectionist agenda and the resultant trade war fears started weighing on large-cap stocks that have considerable international exposure. And the domestically focused pint-sized stocks soared In additions to trade tensions, there were some other factors that played their roles in …
A 20% Dividend Yield from Small Caps with Monthly Dividends Read More »
There are many variations of the covered call trade. The classic covered call is to select the trade, buy the stock and sell the ATM call. In addition, there are a number of strategies that are variations of the classic call based on different trading ideas. One covered call variation is expiration writing. The investor …
Previously, we posted information on doing a covered call using a LEAPS option. Call calendar spreads are similar to a covered call. One part of the call calendar spread is buying a LEAPS call instead of owning the stock. Then, we can sell call options (like a covered call) with less time to expiration (the …
In a flat to bullish market, most call writers will sell an at-the-money call on the stock they own. the rationale for selling an ATM call is that they have the highest premium in terms of time value. Of course, the option seller can sell at any strike price. What should the call seller do …
How to Get More Protection from Stock Price Declines Read More »
Many investors look to their portfolios for income. To get current income, these investors should look for high yield investments. High-yielding investments can be a little confusing if you just search for the biggest yields. This article will share some guidelines to creating a cash machine for high income. A “Real” High Yield Investment: Pays …
At Get Rich Investments, we create investing strategies to capture monthly income. This may take the form of covered call trades, cash-secured put trades, CEFs for monthly dividends and other strategies. However, as the market volatility increases such as we have experienced lately, investors get worried about protecting their capital. We do have an answer …
Using a Protective Put to Prevent Investment Losses Read More »
