Gordon Scott has been an active investor and technical analyst for 20+ years. He is a Chartered Market Technician (CMT). Vikki Velasquez is a researcher and writer who has managed, coordinated, and ...

A covered call is an options trading strategy that offers limited return for limited risk. A covered call involves selling a call option on a stock that you already own. By owning the stock, you're ...

Learn how “sell to open” works in options trading. Understand its role in call or put options and explore examples to boost your trading knowledge.

Here's an example: Let’s say an investor owns 100 shares of XYZ stock trading at $50. They sell a covered call with a $55 strike price and collect a $2 premium per share ($200 in total). If XYZ stays ...

Investors can use ETFs to implement this relatively simple options strategy for yield and capital preservation.

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Covered calls are a common investment strategy. This strategy involves owning stocks and selling call options on them. By selling call options, investors earn extra income from option premiums while ...

Derivatives like options can be risky securities to trade especially if you don’t have a strategy. For many traders during the pandemic years, options were used to speculate on volatile stocks. But ...

Covered calls and dividend stocks are a natural pairing. One provides a steady stream of income through payouts, while the other adds a layer of premium on top. When combined, the two can produce a ...

High yields are one of the main attractions for investors pouring billions of dollars into exchange-traded funds that use options to generate extra income. Among the most popular of these funds are ...

In options trading, an uncovered option refers to a call or put option that is sold without having a position in the underlying stock. An uncovered option can also be referred to as a naked option.

Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...