Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.
The covered strangle combines two option strategies: a Covered Call and a Cash-Secured Put. Using IWM as an example, you already own or buy 100 shares of the ETF, sell one call short and sell one put ...
A potentially fruitful stock options strategy known as writing covered calls can be performed on stocks you own to collect additional income during every options expiration period. It can be lucrative ...
A covered call option strategy is implemented by selling a call option contract while owning an equivalent number of the underlying securities. The option premiums provide additional income, which is ...
For investors hoping to juice up the income from their stock holdings or preserve capital, covered calls could be an effective and relatively low-risk way to accomplish those goals. In its most basic ...
Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. A covered call is an options ...
Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...
An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their ...
This ETF's yield is undeniably massive, but it comes with disadvantages even the hungriest income investors can't ignore.