I read a thread on another board (vacations etc) whereby the poster says they use a covered call annually on a particular vacation industry-type of stock for a specific purpose because of the regulary cyclical trends.What is this and how do I utilize this strategy?Thanksfogfog
Covered call - when you have stock, and willing to sell it for specified price, before or on specified date (3d Friday every month). 1 call - 100 stocks.You hope stock goes sideways or a little bit up, because if stock pass strike price it is going to be taken from you.Good Luck
Check out this article about covered calls. It should explain most of your questions about the strategy:Basic Options Strategies: Covered Callhttp://www.theoptionsinsider.com/tradingtechnology/?id=206Hope that clears things up for you.
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