Day trading or buying and selling stocks is probably one of my career frustrations. I tried once. I resigned from what I thought was a really boring job and jump into a suite that I believed will give more satisfaction and more money in the bank, but I lasted only less than a month. Lesson learned –stock trading is not for me. However, I still want to invest my money on stock options. How do I proceed?
Another option that looks feasible for me is covered call.
To start with, what is exactly a “covered call?” Allow me to borrow this good definition from BornToSell.com:
A covered call is an investment strategy involving two transactions. First, you buy stock (or use stock you already own). Second, you sell a call option against that stock. The combination of being long the stock and short a call option is called "covered call." It is also known as a "buy-write" transaction (because you buy the stock and write (sell) the option).
Simply put, it is a sound and simple an alternative to stock trading. Of course, I do not mean here that you jump the gun immediately with this scheme. First, you need to learn all the basics required to go cautiously with this. Good news though, BornToSell.com offers free tutorial in this department.
The tutorial will not only give you a detailed tour of the world of covered calls but they will also assist you on how to choose the right trades for you via a “covered call screener” and more importantly, they will introduce to covered call portfolio management to help you “maximize the amount of time you receive each month.”
Okay, I might still sound to simplistic there. Let me remind you that this is not another “getting rich quickly” scheme like those proliferating in the net. This means hard work and prudence on your part. You can only succeed in covered calls depending on how you have master the rudiments involve and you make good decisions in each option you buy or sell. Better yet, to get on with your proper education on this, try this “no-obligation 2 week free trial.”
Wish you financial health! [ click to continue reading ]
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