Covered calls can be a real income earner, especially for those who seek an income through selling options on a regular basis.
The Super Charge Buy-Write Strategy is among the better covered calls strategies to achieve an income goal.
This strategy uses covered calls to establish a regular pattern of selling options for income to build an income or revenue stream to augment all kinds of regular income such as employment income, dividend income, retirement and pension income, government assistance income. In short any income can be boosted through the use of Covered Calls.
Covered Calls Using The Super Charge Buy-Write Strategy
This strategy not only generates a decent income stream through selling options for income, but it keeps my capital in the market for very short periods of time and yet alows covered calls to generate significant returns.
Yesterday two trades expired that were set up just a day earlier. In short these trades did not require any actual capital outlay as there is a 3 day settlement rule on stock ownership. Since I was exercised out of my shares at the close of the same day as the trades were made, no capital will be needed. This is an excellent way to generate income through margin use but again investors always need to be cautious to not over-extend their use of margin. Stocks are called risky assets for a reason – they are indeed risky. Any kind of unknown event could hit the market during the day and send stocks or even just the stocks I am trading, lower.
That is always the difficulty with trading among risky assets. Covered Calls can assist in reducing that risk as can trading options for income over very short time frames such as just 24 hours which many of the Super Charge Buy-Write Strategy trades are designed around.
This article outlines another covered calls trade done this morning…This Super Charge Buy-Write Strategy Trade alert article is for members.
Covered Calls – Super Charge Buy-Write Strategy Trade for Apr 6 2016
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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