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 ...
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 ...
In the realm of investment strategies, few are as valuable and versatile as covered calls. But what is a covered call? Here, we take a closer look at the lower-risk options strategy, as well as the ...
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 ...
In the classic covered call strategy, an investor accepts a ceiling or cap on the appreciation of an investment—for example, a stock market index—in return for income from the sale of a call option.
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 ...
An entire investment sub-industry has sprung up around covered call ETFs. They have boomed in popularity in recent years, with assets under management growing from about $18 billion in early 2022 to ...
Any "income" driven strategy that can incur significant losses at any market cycle phase is fundamentally flawed. The potential for huge losses undermines the reliability and sustainability of such ...
Opportunities for high current yields are becoming scarce due to the flattening of the yield curve and the lack of attractive leveraged instruments. Junk bonds are one of the few options for current ...
What is crypto options trading? A crypto options contract grants the holder the right, but not the obligation, to purchase (call option) or sell (put option) an underlying cryptocurrency at a ...