The document provides 7 methods for enhancing profits from writing covered call trades, including:
1) Selling classic covered calls against owned stock and benefiting from time decay of the short call.
2) Selling out-of-the-money calls to collect premium and benefit from potential upside if the stock price increases.
3) Closing profitable short calls early when volatility collapses, locking in gains.
4) Trading the short call against changes in the underlying stock price for additional profits.
5) Rolling up or out short calls to squeeze extra profits from stock price rises.
6) Adding spreads to covered call positions to profit from rising or falling markets.
7) Adding long protective puts
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
Dear All,
It contains plenty of useful and valuable information about Forex. Please do not hesitate to contact me directly for more information.
Regards
Dr. Hamed Faghiri
Forex Trading - How to Create a Trading StrategyBlueMax Capital
Forex trading how to create a trading strategy. The Forex Fundamental Analysis, Technical Analysis, Risk Management, Rules Successful Forex Traders Follow and Reasons Why Forex Traders Fail.
Price action trading strategy is where investment instruments are bought or sold for short-term period based solely on price movement. Click to know more
Dear All,
It contains plenty of useful and valuable information about Forex. Please do not hesitate to contact me directly for more information.
Regards
Dr. Hamed Faghiri
Forex Trading - How to Create a Trading StrategyBlueMax Capital
Forex trading how to create a trading strategy. The Forex Fundamental Analysis, Technical Analysis, Risk Management, Rules Successful Forex Traders Follow and Reasons Why Forex Traders Fail.
Introductory presentation on commodity tradingPradeep Sahoo
An introduction to Commodities Markets, Futures and other derivatives. Comparison of commodities with other asset classes and why commodity trading is indispensable for any country.
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
Heiken Ashi comes from the Japanese term 'Heikin Ashi', meaning average bar. The Heiken Ashi indicator modifies how price values are displayed on a chart.
Japanese candlesticks are one of the most popular methods of the technical analysis. In this presentation, JustForex will teach you how to read Japanese candlesticks and trade according to it.
For full text article go to : https://www.educorporatebridge.com/forex/forex-trading/ Have you ever wondered about the, import-export happening in the countries? Are you new to the concept of Forex Trading? Here is an article on forex trading which will explain you about the Forex Market like why Foreign Exchange happens? , different ways to trade forex, and risks involved in forex trading.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Binary Option Trading Education is must for the all kind of binary options traders. For both the beginners as well as the experienced traders are the professionals needed their education for good returns on their investment.
Introductory presentation on commodity tradingPradeep Sahoo
An introduction to Commodities Markets, Futures and other derivatives. Comparison of commodities with other asset classes and why commodity trading is indispensable for any country.
Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”
Heiken Ashi comes from the Japanese term 'Heikin Ashi', meaning average bar. The Heiken Ashi indicator modifies how price values are displayed on a chart.
Japanese candlesticks are one of the most popular methods of the technical analysis. In this presentation, JustForex will teach you how to read Japanese candlesticks and trade according to it.
For full text article go to : https://www.educorporatebridge.com/forex/forex-trading/ Have you ever wondered about the, import-export happening in the countries? Are you new to the concept of Forex Trading? Here is an article on forex trading which will explain you about the Forex Market like why Foreign Exchange happens? , different ways to trade forex, and risks involved in forex trading.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Binary Option Trading Education is must for the all kind of binary options traders. For both the beginners as well as the experienced traders are the professionals needed their education for good returns on their investment.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
The rewards of using investment leverage can be impressive. However, the dangers of investment leverage are such that one needs to proceed with caution.
https://youtu.be/1c43BKp4PPY
Important Lessons For Successful Investing.StockAxis
"Important Lessons for Successful Investing" is provided by StockAxis, one of the best investment advisory firms in India. This presentation contains information and tips on successful investing, including the importance of having a long-term investment strategy, understanding market cycles, diversification, risk management, and the significance of choosing high-quality companies for investment. The document also provides insights into some common mistakes made by investors and how to avoid them. Overall, this presentation serves as a useful guide for individuals who are interested in investing or seeking to enhance their investment knowledge.
Know More about our services:https://stockaxis.com/LP/Multibagger/OptionC/Index.aspx?source_google=ads&source_medium=searchsales&source_campaignid=04022023&source_campaignname=SSLPC
5 steps to make profits in forex trading using day trading strategyIftekhar Ahmed
In the ever-volatile and lucrative world of Forex, day trading stands tall as an incredibly effective strategy. Foreign exchange is a very turbulent field, with prices seeing constant change every single day. Though at the outset, most fluctuations seem haphazard and random, every movement obeys a certain trend. With practice, these trends can be capitalized on.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
www,CandleStickForums.com
Stock Investment Profits
Are stock investment profits limited to specific occasions or are they more widely available? This has to do with long term investing versus short term investing or even day trading. Stock investment profits come from two factors, dividends and changes in stock price. There are dividend stocks that have paid dividends for decades and even more than a century. However, the stock investment profits solely from dividend stocks usually cannot compete with the investment profits with strong growth stocks. Thus it is with the change in stock prices that both investors and traders can best gain stock investment profits. So, you want to make stock investment profits. What stocks do you invest in? When do you invest? Do you buy and hold or do you buy stock at the bottom of a price curve and sell stock when its value peaks? If you are interested in trading stocks instead of adding stocks to your stock portfolio for the long term, selling short can be profitable in a falling market. Using technical analysis with tools like Candlestick analysis gives the trader or investor a clear and accurate view of market sentiment. Combine the use of Candlestick charting with fundamental analysis of stocks looking for a low price to earnings ratio, a strong margin of safety, and forwarding looking intrinsic stock value and the investor or day trader has a good recipe for stock investment profits.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
What are Options and How to Trade Options 10 Successful Options Strategies.pdfNazim Khan
If you’re planning to step into the world of finance and investment, you’ve likely come across the term “options” at some point. Options are powerful financial instruments that allow investors to trade the rights to buy or sell assets at predetermined prices within a specific time frame.
1. What are the options?
Options are derivative contracts that give traders the right, but not the obligation, to buy (call option) or sell (put option) a specific underlying asset, such as stocks, commodities, or currencies, at a predetermined price within a specified time period. These contracts provide flexibility and leverage, allowing investors to take advantage of market movements without the need to own the underlying asset.
2. Types of Options
2.1 Call Options
A call option gives the holder the right to buy the underlying asset at the strike price before the expiration date. Traders typically use call options when they anticipate the price of the asset to rise.
2.2 Put Options
Conversely, a put option grants the holder the right to sell the underlying asset at the strike price prior to the expiration date. Put options are commonly used when traders expect the price of the asset to decline.
3. How Options Work
Options operate on a contract basis, where the buyer pays a premium to the seller for the rights provided by the option. The premium is influenced by factors such as the underlying asset’s price, volatility, time to expiration, and interest rates. As the price of the underlying asset fluctuates, the value of the option can increase or decrease.
4. Benefits of Trading Options
Trading options offer several advantages to investors:
• Leverage: Options provide the opportunity to control a larger position with a smaller investment compared to buying the underlying asset outright.
• Risk Management: Options can be used to hedge against potential losses in a portfolio.
• Flexibility: Options can be customized to suit various trading strategies and market conditions.
• Profit Potential: Options allow traders to profit from both rising and falling markets.
5. Risks of Trading Options
While options can be lucrative, it’s essential to understand the risks involved.
• Limited Time: Options have expiration dates, and if the underlying asset doesn’t move in the desired direction within the specified time frame, the option may expire worthless.
• Loss of Premium: If the predicted market movement doesn’t occur, the premium paid for the option may be lost.
• Complexity: Options trading can be complex, requiring a good understanding of market dynamics and trading strategies.
• Leverage Risk: Although leverage can amplify profits, it can also magnify losses if the trade goes against expectations.
6. Options and Risk Metrics
1. Delta: Delta measures the sensitivity of an option’s price to changes in the price of the underlying asset. It indicates the expected change in the
3. Theta: Theta represents the time decay of an option’s value. It measures the rate at
Similar to 8 ways to profit with covered calls (20)
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
2. The covered call trade has always been known as an income strategy as you
receive premium for selling calls against your stock. This is the most popular
rationale for implementing this type of trading. However, there are many
more dimensions that can be coupled with covered call trading to further
enhance the potential for profits. Here is a list of 7 methods to more profits
writing covered call trades.
1. Selling the classic covered call against stock you own. You make
money with the time decay of the short call. Usually you sell the near
month or next month out so you can continue to compound your
money.
2. You can sell out-of-the-money (OTM) calls as your short call. Here you
get the call premium and potential for a capital gain as the OTM call
offers some upside profits for the stock price to increase.
3. You can make more money on a short call when volatility collapses’
early in the trade and you close the trade. We have all been in covered
call trades when after a few days the call option loses value and you
find yourself in a very profitable trade. You can close this short call to
lock in profits.
4. You can trade the short call as the stock price changes. For example, if
the stock price decreases, you can close the short option early for a
profit. Then, the call can be written again when the stock prices snaps
back to higher levels. This is similar to channeling stocks by trading
the short call against stock price changes.
5. You can roll up or roll out the short calls to a higher strike price or to a
later expiration month. This allows you to squeeze extra profits out of
a stock price rise.
6. You can add option legs to a short call to create spread positions such
as a bull or bear call spread. This is good to take profits from a rising
covered call trade or a falling stock price.
7. You can add a long protective put to the covered call position as it will
increase in value as the stock price decreases. This is usually utilized
as protection against stock declines but can create more income when
a stock price declines while you are holding a covered call position.
8. You can use LEAPS as stock replacement then sell a short call against
it. This creates leverage for potential returns and puts less capital at
risk.
It is not necessary to use all of these methods when trading covered calls. It
will be advantageous to the income trader to use more than one method to
make money income from selling premiums. In addition, some of these
methods can be used to enhance and/or protect your monthly income.
Get
Get Rich Investments.com Page 2
3. Adding these methods does require more monitoring or your covered call
positions. The advantage is that it adds more potential for profits compared
to the classic covered call trade. It really comes down to how active you
want to be in your income trading each month.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 3
4. Writing Out-Of-The-Money Covered Calls
If you are bullish on a specific stock, then you should consider writing an
out-of-the-money (OTC) covered call. This type of call includes a strike price
that is above the current stock price. You still get a call premium but it is
generally less than an at-the-money call. But you also get the potential of
stock appreciation because of the higher strike price of the call sold. This
creates a situation for potentially two income streams from one trade.
This trading strategy works best when you can confirm the stock being in an
uptrend or if the stock is bouncing off a support level. A support level would
be something like a 50-day moving average or even a Bollinger Band that
has been stretched on the bottom.
The key to this strategy is to be right about the stock price moving higher in
the near future. Due to the OTM call offering fewer premiums than an ATM
and having a low delta, they can be slow to lose value on a stock pullback.
This strategy should be used in special situations or during a slow moving
bull market.
Also, you want to avoid this strategy when he stock has gapped up until the
new price range is confirmed. Stocks that gap up usually pull back before
they stabilize in a new trading range. However, a stock slowing moving up is
a good opportunity for OTM writes.
This strategy works well when you have a down-day in the stock or market.
The stock price decline will usually be temporary down and will bounce back
in a few trading days. You need to be sure the market decline is not a
permanent correction that will be sustained for months.
This is a good strategy for stocks you do not want called away in a flat
market. You can still get an increased profit if the stock price is above the
entry price at expiration. Then, you get an even bigger return if you get
called out at the higher call strike price.
Get
Get Rich Investments.com Page 4
5. Writing Deep-In-The-Money Covered Calls
The conservative covered call writer is seeking downside protection and
income from premium. This investor places more value on protecting capital
and is not concerned about their stock being called away. This covered call
investor will sell calls that are deep-in-the-money (ITM). This is a good
strategy when the market uncertainty increases and there is increasing
worry about a market correction.
For example, if Wal-Mart is trading at $53.00 then a deep ITM call will be
sold at the 45 strike price. This call is $8.00 ITM and provides a 15%
downside protection. With a stable stock like WMT, it probably will not go
below the 45 strike price during a market pullback. In fact, WMT has not
been below $45.00 in the last three years.
The trade-off for selling ITM calls is that the returns will be lower as the
majority of the call premium is intrinsic value. The method to the madness is
that these calls offer more downside protection in return to accepting a
lower time value of premium. ITM call writes can be a very successful
strategy when used on large-cap stocks during a market pullback.
There are many covered call traders that suggests they made a higher
return over a long time period for several reasons:
It is not that difficult to find a 3% return with 30 days remaining on
high quality stocks;
The stocks will be assigned at expiration so you are never stuck with a
stock that is down;
ITM calls have a higher delta so they lose value closer to the stock.
You can easily roll down your strike price without a loss;
Trading the short call is more profitable due to the high delta. Here
trading refers to buying back the call on a price dip and write them
again on the bounce back.
The ITM writer should concentrate on large-cap, high quality stocks as there
is never a reason to trade poor quality stocks regardless of your strategy
with ITM calls. The one item of note is that this strategy is not the best in a
rising bull market unless you have high risk avoidance to a potential trade
loss.
A variation of this trade is to use it when volatility is high such as in the
Get
Get Rich Investments.com Page 5
6. financial crisis in 2009. The high volatility will increase the amount of
premium and return. You can use this strategy when there is a pending
event such as an earnings release but not as a speculation trade. The key is
to use this strategy with large-cap, high quality stocks.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 6
7. Writing Covered Calls With High Quality Stocks Using Volatility
This is a great strategy because it uses the highest quality stocks that high a
high volatility. I define a high quality stock as a stock rated 5 stars by the
S&P rating agency. As we know, when volatility is high you get more
premium from selling calls against your stock. This will increase your return
on investment for covered writes.
Here is how it works:
stock volatility is higher than the market volatility measured by the
S&P 500 index (SPY);
stock has high implied volatility to generate good call writing return on
investment;
Stock pays an annual dividend whose yield is at least 3% or better.
Then, if not called out, you can rewrite the call month after month until you
are called away. This strategy will minimize the amount of time used in
selecting stocks and managing trades. This will also lower the stress
involved with covered call trading.
To implement this strategy, you should look for:
A low to medium historical volatility between 20-40% but higher
implied volatility which tends to generate more premiums;
A historical volatility of 30-60% with similar implied volatility as you
will hold these stocks for several months - the high HV will provide
more premium each month.
Lastly, do not try this strategy on a lower quality stock just to increase
your returns - stay with the 5 star stocks.
The use of high quality stocks will lessen the number of potential stocks
because you have preselected a stock list. The high quality stocks are
generally blue-chip stocks that pay a dividend. I am not a fan of buy and
hold investing but this strategy is an effective way to maximize monthly
income from investments.
Get
Get Rich Investments.com Page 7
8. The high quality stocks or blue-chips tend to move less in price compared to
smaller cap stocks. These high quality stocks tend to outperform during
periods of uncertainty in the markets. This is why we use these stocks in this
strategy as they can weather the market downturns and rise during a bull
market.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 8
9. Trading Covered Calls by Legging In
This strategy is a variation of the out-of-the-money (OTM) covered call
strategy. When you are anticipation a market upturn such as a bounce up or
your stock is in a prolonged uptrend, this strategy may work for this type of
situation. The legging in strategy is to buy the stock and then wait for the
price to increase before selling OTM calls. The legging in is related to the buy
the stock (one leg) before you sell the calls (second leg) at a later date to
complete the covered call trade.
This strategy can significantly increase your returns when the stock price
moves up rapidly. Then, you have a decision to make about when to sell the
call. Some traders decide that the stock will continue to rise so they do not
sell the call. Others may decide the stock is out of gas to move higher so
they will sell an OTM call for additional income.
As an example, you may purchase a stock at $52.40. The current month
52.50 call strike is selling for $1.00. You can buy the stock at $52.40 and
sell the 52.50 call for $1.00 and get an unassigned return of 2.14%. You
don’t want to lock in your covered call trade for a low return so you wait on
the stock. To leg in to this trade, you would buy the stock and wait until its
price increases to around $54.00. At this time, the 52.50 call strike price is
$2.50. The leg in trader would sell the 52.50 call strike if the stock was out
of momentum and poised for a pullback. This would create an assigned
return of 5.01%. This return is more than double the initial trade with a
downside protection to $52.50.
The leg in trade more than doubles the unassigned return because the
option premium more than doubled (from $1.00 to $2.50) as the stock price
increased. The return percentage doubled while both trades were at the
same strike price (52.50). This could be even better if the trader moves their
call strike price to 55 to let a stock continue to run up to a higher price.
So what is the trade off for the additional return? Legging-in is a little
speculative because it leaves the investor without a premium for a short
Get
Get Rich Investments.com Page 9
10. time while waiting for the stock price to increase. Additionally, the trader
does not have the downside protection while owning only the stock without
selling the call. Lastly, the investor could be wrong and the stock never
increases in price.
The bottom-line is that the trader must have a solid reason for why the
stock will increase in price in the short-term. The moment this rationale is
proven wrong, the trader must make a decision on how to proceed with the
stock they own.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 10
11. Covered Calls on Market Down-Days
One strategy to deal with the current market turmoil is called down-day
covered writing. This is based on looking for stocks that are down on a day
that the market is down. This strategy assumes the rubber band reaction of
the stock bouncing back up when the market move up. This gives the writer
the advantage of buying the stock at a cheaper price than on a market up-
day.
On a day with a big pullback, you are trading a lower premium for the
potential capital gain of the bounce back price. For example, a stock is
trading at $45 and the current month 45 call is priced at $2.10 indicating a
cost basis of $42.90 and an assigned return of 4.9%. However, on the
market down-day, the stock drops to $43 and the 45 call price drops to
$0.90. If you enter this trade by buying the stock at $43 and selling the 45
call for $0.90, your cost basis is now $42.10 and your assigned return is now
6.9%. If the stock falls short of $45 at expiration, you keep the $0.90 in
premium and write a new 45 call at the next expiration date.
The key to this strategy is making sure the stock is trading with the market.
Here we will define the market as the S&P 500. Use a chart service such as
bigcharts to create a chart with your stock. Then click the compare bottom
to add the SPX (S&P 500). You should notice that the stock and SPX have a
very similar pattern. If yes, the two are moving in lockstep together and this
is a good candidate for this strategy.
This strategy is not about the technical movement of the charts but about
the potential snap back movement of the stock. This serves as an example
Get
Get Rich Investments.com Page 11
12. of why covered call traders sell out-of-the-money (OTM) calls to increase
return on investments.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 12
13. Covered Calls at Expiration
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 variation is expiration writing.
The investor will scan for short-term writes in the last two weeks of the
current option cycle. The trader is looking for stocks with high premium and
high return on funds invested. To get high returns over such a short time
period usually indicates a high implied volatility and increased risk. When IV
is higher than actual volatility, then there is usually a pending event so you
must research these trades very thoroughly.
One safer way to do this is to find a stock with higher volatility due to an
event planned in advance. Examine the stock to see when the event date is
scheduled. If the event will occur after the current expiration date, then you
can trade in the current month calls. The reason for this is that event
volatility may increase premiums across both the current month and the
next month option cycles. This is a cool trick that most covered call writers
had not heard of before.
This is not a risk free trade but it works if you are right about the timing of
the event expiration being after the current month. The key is to actually
confirm the event date and not speculating about when it will occur. Do not
just go by the high volatility in two month alone. If the IV is in line with the
historical volatility, it may be a great covered call write anyway.
Get the Get Rich Monthly Income Newsletter here.
Get
Get Rich Investments.com Page 13
14. Create Monthly Income with Your Portfolio
Get Rich Monthly
Investment Plan for only $10.00 per month
“Wealth is the ability to fully enjoy life.” – Henry David Thoreau
Does the idea of using an income investing strategy to generate 3% to 5% a month on your funds
appeal to you? That’s more than enough return to beat the historical average of the overall stock
market.
Do you like the idea of confining your investing to only high-quality, conservative stocks,
defined as S&P 5-star ranked stocks? Why not leverage the research of the professional research
organization with decades of experience!
How about using a simple strategy to limit your risk in each trade to only a few percent of the
amount invested? The key to long-term investing success is to
not have big loses!
Do you like to invest in assets that pay monthly dividends with annual yields of 10% or more?
These dividends create a portion of your monthly income plan that can create a significant
number of monthly dividend checks, month after month.
If you answer YES to any of these questions, the Get Rich Monthly Investment Plan is for
you!
The Get Rich Monthly Investment Plan provides the investor with the following investment
vehicles:
1. A list of covered call trades consisting of high quality stocks such as the S&P 5-star
research rating of the best stocks that are recommended as strong
buys. These lists are updated each week with select trades added daily.
2. A list of covered call trades using LEAPs (Long-Term AnticiPation Security) as a stock
replacement strategy to increase returns.
3. A list of CEFs (closed-end funds) that pay monthly dividends month after month. These
investments can pay more than 10% annually and can sometimes be purchased at a
discount to net asset value.
4. A list of calendar spreads to use to increase your return while lowering your capital
required to trade. Do you want to pay full price for the stock or purchase a call as an
alternative?
Get
Get Rich Investments.com Page 14
15. 5. Low risk investments to minimize market risk and to prevent your portfolio from taking a
big lost in such uncertain market environments like we are
experiencing today.
6. We have created a strategy called the Blanket Put that will protect your investment from
market downturns. The Blanket Put is your safety blanket to protect your portfolio from
market downturns. This is worth the membership fee by itself.
7. Access to multiple education resources to better learn how to be a more successful
investor. Trades don’t end when you make a stock buy, sell a call, or complete the trade.
Here we want members to be educated about how to manage a trade and when to take
action.
How is the Get Rich Monthly Income Plan different from the numerous other covered call
services?
We focus on real stock research such as the S&P 5-star rated stocks rather than a computer
program that selects trades based solely on return. We do the screening for you. We all want the
best return possible but our Monthly Income Plan only selects the best trades based on numerous
variables such as stock quality, great research, dividend yield, stock volatility, low risk, and
many other indicators that can’t be disclosed here for obvious reasons.
The Get Rich Monthly Income Plan diversifies risk by seeking multiple streams of income.
You can create monthly income by: covered call trades, covered LEAPS, calendar spread trades,
monthly dividend CEFs and dividends from owning high quality, conservative stocks. That is 5
streams of income from this simple list as we focus on “cash flow” to the investor to improve
your quality of life.
We at Get Rich Investments eat our own cooking. The trades and strategies shared with you are
the same that we use for our monthly income. This is exactly why we can offer this service at
such a low fee compared to the $100 per month services typically found on the internet.
We have more than 20 years experience in the markets including trading covered calls and
monthly income investments. In addition, we have Masters in Business Administration (MBA)
from a top business school and other experience in corporate finance and strategy. We have
authored several books including the original Get Rich – Stay Rich: Investing for Monthly
Income that is currently on sale at Amazon and other bookstores around the world. It is important
to you that your monthly income is in qualified, experienced investor hands who can be trusted
to deliver the best trades.
There are no gimmicks, no bait and switch or added fees. We give you all of this for only $10.00
per month. You will be charged monthly with no required annual subscription. If you don’t like
the service, you can cancel at anytime. We are convinced that you will like the quality of service
and continue to make monthly income.
Try it today! Get Rich Monthly Income Newsletter – $10.00 per month
Get
Get Rich Investments.com Page 15