Covered call trading is not like directional trading which has an objective to time the movement of a stock in the direction it is moving. Covered writing is a game of regular, incremental returns. The covered call writer’s objective is to collect the option premium for income without taking any damage to the downside of …
How do you get started with trading covered calls? Once you understand the principles of writing options, you must determine what stock to purchase for this trade. The simplest method is to start with a list of stocks. I suggest the S&P Dividend Aristocrats list. Since this trade requires buying stock, why not get paid …
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