Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance One of my favorite strategies in a range-bound market like the one we have now is the covered call - also known as the buy write. If you haven't heard of covered calls, here's a basic rundown... The overall point of a covered call is to generate income for investors who think stock prices are unlikely to rise much further in the near term. So an investor sells a call option (with a set price and expiration date) on a security that they own. Professional market players use these covered calls to boost investment income. However, individual investors can also benefit from this strategy. |
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