ARTICLE SYNOPSIS ...Rather than shying away from the complexity of options, stick with some simple basics in exploiting them....
ARTICLE SYNOPSIS ...Increasing Return With Covered Calls by Joe Demkovich and Eugene Theriot Worried about how exposed you are to price fluctuation in your options position? Don't be. Here's how you can retain flexibility by using covered-call options. One of the most conservative investing actions you can take is to sell covered-call options.Covered refers to your owning the stock underlying the calls you sell. Thus, if someone actually does ""call"" you, or take you up on your offer to sell the option,you can just sell them the stock. Of course, you do get paid for this, sometimes quite handsomely. There ar...
ARTICLE SYNOPSIS ...Getting Started With Options Rather than shying away from the complexity of options, stick with some simple basics in exploiting them. You can start paper-trading options despite their daunting reputation for complexity. If you succeed on paper, you'll have taken the first step to extracting profits from the real market. It's true that there are many kinds of options, and options terminology is like a foreign language, but professional traders use options for a good reason. We'll tell you why. But first, yes, you can lose 100% of your investment. Of course, it is theoretically possible to do...