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EXCLUSIVE: Roundhill Launches Covered Call Bitcoin ETF, 'Potential High Income From Bitcoin's Volatility'
Monday, January 22, 2024 - 2:14pm | 764One of the biggest storylines for the investing world and cryptocurrency sector in years was the approval of Bitcoin ETFs, which happened recently with the SEC giving the green light to 11 ETFs. A new Bitcoin (CRYPTO: BTC)-themed ETF from Roundhill Investments offers a new way to trade the...
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Understanding Covered Calls
Wednesday, February 15, 2023 - 1:16pm | 1542Having options explained to you doesn't have to be difficult or confusing. First, some put and call option basics explained: What is a 'Covered Call' A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same...
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Different Options Strategies For Different Traders
Friday, November 24, 2017 - 12:29pm | 489Options trading can be a very profitable trading technique, but it requires a certain level of comfort and knowledge of the market. Despite that, there are options strategies that traders with different amounts of experience—and differing appetites for risk—can use to make a solid buck...
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Time To Write Covered Call Options On BHP Billiton?
Thursday, June 19, 2014 - 4:29pm | 370Blue chip stocks in the natural resources sector, like BP (NYSE: BP) and Rio Tinto (NYSE: RIO), are ideal for writing covered call options. That's when the owner of the stock sells options, but not the obligation, to buy it at a higher price in the future. In the natural resources sector,...
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Qualified and Unqualified Covered Calls
Monday, May 21, 2012 - 2:59pm | 800The federal tax rules concerning options are among the most complex sections of the tax code. This has led to many misunderstandings. For example, many traders have heard that some covered calls are “unqualified.” What does this mean? It means that in some situations, a trader who has...
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Trading Options Near Expiration
Wednesday, May 9, 2012 - 8:45am | 964The great dilemma for options traders is well known: Options close to expiration cost less but expire soon. Options with more time to develop profitably cost more. How do you balance these conflicting attributes? Trading options very close to expiration and containing little or no time value...
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Collars: Protective Options Strategies
Tuesday, May 8, 2012 - 11:39am | 629The problem for anyone in the market is the threat of loss. Owning stock means you risk a decline in the price, and this is where some specific options-based protective strategies are exceptionally valuable. One such strategy is the collar. The collar has three parts: 100 shares of stock, a...
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The Complexity of Covered Call Return Calculations
Sunday, April 15, 2012 - 5:47pm | 719What is your return from writing covered calls? The answer: Well, that depends. In order to accurately calculate your return, you need to set a few rules for yourself. These include: Use the same calculation for all of your covered calls. Compare return for different strikes. Annualize returns...
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Four Pitfalls of the Forward Roll
Friday, April 6, 2012 - 6:42pm | 810Traders, especially covered call writers, love the forward roll. It helps avoid or defer exercise, creates additional income, and helps keep ownership of stock that is on an uptrend. But there are potential problems. Among these are the following four every covered call writer needs to remember:...
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Seven Guidelines for Covered Call Writing
Monday, April 2, 2012 - 2:45pm | 1086The big appeal of covered calls has always been the double-digit annualized return that is not only possible but likely. Gains come from three sources: capital gains on stock sales, dividends, and option premium. But is it always profitable? No; you can lose money writing covered calls and even...
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CSCO is Breaking a Downtrend That Started Back in February
Thursday, September 8, 2011 - 1:00pm | 76CSCO is breaking a downtrend that started back in February. The break is taking place on decent volume. We just set an alert at 16.10. If the alert sounds, we will do one of two things: Buy shares of CSCO and sell front month 17 Calls against them Buy a 15/16 front month Call spread