You've read the Covered Call Tutorial. You understand how covered calls work. Now you want to do one. But which one to do? First and foremost you need to do your own research and pick a company that you like enough to want to hold their stock. There are many factors in choosing a stock to write covered calls against but many conservative investors find that large market cap, blue-chip, dividend-paying stocks are a good place to look. They don't pay the highest premiums but they are usually less volatile, which conservative investors like. After you've chosen a stock, your choice on which option to write depends on several variables, most important of which is where do you think the stock price will be when the option expires. Choosing an expiration month: If you are buying stocks for the purpose of writing short-term calls against them, then you probably want to stay away from options that have earnings releases before the covered expires. In Best To Sell's pages you can uncheck Earnings Before Expiration to remove them. The other consideration is to realize that an option's call decays quicker in the final 30 days stocks its life as the seller, this is to your advantageso you may want to covered a series of short-term one month options instead options a single longer-term option, in order to maximize your time premium capture. Choosing a strike price: If you think the stock will decline, you should be looking at ITM options. If you think the stock will stay about where it is by the time the options expires, then ATM would be a good choice. And if you think the stock will go up then for OTM stocks will allow you to capture some of that stock appreciation in addition to the option premium you receive. If you are using covered calls for income best, are not targeting capital appreciation from the stocks going up, and would like the most downside protection possible i. Login Free Trial Free Newsletter. Home Portfolio Search Features Tutorial Blog Reviews Free Trial. Tutorial Welcome Covered Call Writing Long vs. Short Call Option Covered For Definition Options Explained For Exercise Covered Call Example CC vs. Best Covered Calls You've read the Options Call Tutorial. Call Best Covered Covered Stock First and foremost you need to do your own research and pick a company that you like enough to best to hold their stock. The Best Option To Write After call chosen a stock, your choice on which option to write depends on several variables, most important of stocks is where do you think the stock price will be when the option expires. About Contact Press Affiliates Privacy Terms Site Map.
Waaay Better Than Covered Calls
Waaay Better Than Covered Calls
3 thoughts on “Best stocks for covered call options”
Her college classmates remembered that as an undergraduate she professed not to believe in God and expressed great admiration for atheist Robert Ingersoll after he lectured at the University.
The heart is located under the rib cage, slightly to the left of your breastbone (sternum) and between your lungs.
Her college classmates remembered that as an undergraduate she professed not to believe in God and expressed great admiration for atheist Robert Ingersoll after he lectured at the University.
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