Covered Calls Have Arrived!

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.

The above information is provided by OptionsHouse for informational and educational purposes only and is not intended as trading or investment advice or a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You are solely responsible for your investment decisions. Commentary and opinions expressed are those of the author/speaker and not necessarily of OptionsHouse. Neither OptionsHouse nor any of its employees, officers, shareholders or affiliated companies guarantee the accuracy of or endorse the views or opinions of guest speakers or commentators. Projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature and are not guarantees of future results. Results may vary with each use and over time. Any examples used that discuss trading profits or losses may not take into account trading commissions or fees.