One of my colleagues here at OptionsHouse, who is a tournament crossword puzzle competitor, shared with me last Saturday’s Washington Post’s puzzle. He highlighted the answer for clue for 17 across: “Options strategy also known as a “buy-write.” Those folks who attended our recent webinar should recognize that answer immediately! The Covered Call.
My point is if Covered Calls have become mainstream enough to be one of the major answers in the Washington Post’s climatic Saturday puzzle, they could be mainstream enough for consideration in every stock trader’s “quiver” of trade strategies. If options are a puzzle to you and you didn’t have a chance to attend this basic webinar session live, you can view the archived version on our webinar archive here.
Covered Calls are created by selling 1 call contract against long 100 shares of stock and have been a popular strategy for stock traders as they grow into using options in their portfolios.
In this session, we discussed why traders employ the covered call strategy. We also walked through step by step guidelines on how to set up the trade and how to select the strike and expiration. We finished with tips on how to manage the covered call, before and at expiration day. We even went over some examples on the platform at the conclusion of the session.
If you have the desire to try crossword puzzles, I suggest starting with Monday’s puzzle. It is typically the easiest puzzle of the week as they get progressively harder. If you have the desire to begin to use options in your trading, I suggest learning the basics and the Covered Call (17 across) may be a good place to start.
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