Thursday, July 3, 2025
Covered calls can be an excellent way to improve returns while holding ETFs or other index products. For instance, a trader recently place a large covered call trade in the iShares Russell 2000 ETF (IWM). The trader purchased one million shares of IWM while simultaneously selling 10,000 calls that expire in two weeks. This strategy […]
Dear Reader, Talking about investment yields and returns can be confusing, and actually understanding what happens can be even more daunting. However, we are trying to make money on our money, and understanding potential returns – both as percentages and dollars – helps separate good opportunities from those that are less attractive. If you have […]
Covered call writing allows you to earn money by selling a call option on stock you own. Read on to learn more about how this strategy works.
Covered calls are popular and powerful trading strategies for many reasons. Above all else, an overwriting system can work in just about any type of market. There aren’t many strategies that offer a benefit in most market environments. As a reminder, investors make covered calls when they buy a stock (in blocks of 100 shares) […]
Are covered call ETFs the best way to write options? We’ll explain how these ETFs work and compare it to writing calls on individual stocks.
In this guide, we’ll explain how covered calls work, the benefits of writing covered calls for income, and the risks you need to be aware of.
My goal with my different income-focused services is to help my subscribers earn more money than they would by following the old-school types of investment advice. I recommend higher yields in my Dividend Hunter service. For my dividend growth newsletter, Monthly Dividend Multiplier, I do not settle for the 2.5% to 3% yields that you […]
Selling call options, referred to as covered call trading, is great fun and—when done right—attractively profitable. Your broker will be happy to show you how to get started with covered call selling. What they may not be as clear about is what happens after you sell that first call option. I know from subscribers to […]
Apple (AAPL) traded a massive amount of options last week as the stock climbed to all-time highs. AAPL options trade on average 1.4 million a day, which is already a huge number. However, on one day last week, nearly 3.4 million options contracts traded. 78% of the contracts were calls and that tends to be […]
I know talking about investment yields and returns can be confusing, and actually understanding what happens can be even more daunting. However, we are trying to make money on our money, and understanding potential returns—both as percentages and dollars—helps separate good opportunities from those that are less attractive. If you have dabbled with stock options, […]
