Derivatives like options can be risky securities to trade especially if you don’t have a strategy. For many traders during the pandemic years, options were used to speculate on volatile stocks. But ...

However, where the underlying stock and one or more qualified covered call options are part of a larger straddle, the overall straddle does receive straddle treatment. 3 For example, the IRS ruled ...

Selling covered calls is an options trading strategy that helps you earn passive income using call options. This strategy works by selling call options against shares of a stock that you bought ...

Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

Most traders don’t struggle with covered calls because the strategy is broken. It’s because they start in the wrong place: Scrolling through random tickers, chasing yield, or forcing trades on stocks ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. A covered call is an options ...

Most traders understand what a covered call is, but far fewer understand when the strategy actually has an edge. In this clip from his latest YouTube instructional video, options strategist Rick ...

In options trading, an uncovered option refers to a call or put option that is sold without having a position in the underlying stock. An uncovered option can also be referred to as a naked option.

For investors hoping to juice up the income from their stock holdings or preserve capital, covered calls could be an effective and relatively low-risk way to accomplish those goals. In its most basic ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). A covered writer is an investor or trader who holds the underlying security as a ...