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Advanced Options Strategies: The Pros and Cons of Covered-Call Writing

Which market environment is most beneficial for covered-call writers?

by 12/29/2008 11:30:23 AM
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Before I came to Schaeffer's Investment Research, I had no background in options trading. I was familiar with general market terms, but, like most people, I didn't know the first thing about options themselves.

The first task my boss gave me to educate myself on the ins and outs of options was to read the Schaeffer's 10 Days to Successful Options Trading book. After reading the training manual, I had a new understanding of the world of options. I'm still learning, of course, but I accomplished a sense of what options are and how they are used as an investment vehicle.

Following the completion of the 10 Days book, I moved on to yet another important educational training tool: Schaeffer's Mastering Advanced Options Strategies book.

I am confident that if I, a virtual options novice, can tackle the intricacies of options, anyone can. In this new video series, I'll break down some of the more advanced options strategies into the most simple terms.

In this episode, we'll dissect the pros and cons of covered-call writing. Is this strategy useful in low-volatility market environments? How can covered-call writing invoke additional commission fees? Why is selling a covered call appealing during a stock's stagnation on the charts? Does time decay help or hurt a covered-call writer? To find all of those answers, and more, click the image below.

To learn about straddles and strangles, click here.

To analyze short-dated and long-dated put selling, click here.

To differentiate call buying from put selling, click here.

Enjoy Advanced Options Strategies? Now, you can get it sent directly to your inbox. Simply click here to sign in, select "author" from the first box, determine how often you'd like to be alerted, and enter "Andrea Kramer" into the third box. Easy as 1, 2, 3!


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