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Tips For Writing Covered Calls

Get the free Intelligence Report "Five Tips for Successful Covered Call Writing" now.

Many investors use covered calls as a means to generate income on securities they already own, above and beyond any dividends they're due to receive. This strategy is suited for investors of any level, whether you're a seasoned veteran or beginner options trader.

The idea is: You sell another investor the right to buy stock you already own at a specific price. If the stock doesn't reach that price, you keep the premium from the sale of the option - and you get to keep your holdings. Sounds great, right? But beware, as with any option trade, there are still risks. Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please consult a tax professional prior to implementing these strategies.

When you download this free Intelligence Report, you'll learn the risks and rewards of covered call trading, along with many other valuable insights from TradeKing Director of Education Nicole Wachs. Just enter your email below, and we'll send you this invaluable information about maximizing your returns and avoid common options trading mistakes when writing covered calls.

You'll learn:

  • What is a "covered call?"
  • How covered calls can generate additional income on stock you already own
  • What are the risks and rewards of covered calls?
  • How to manage your trade once it's underway
  • And much more

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