Covered Call Writing by Steven Schinke, Ph.D.
ARTICLE SYNOPSIS ...DERIVATIVES
Covered Call Writing
Here's a primer on writing options to boost return on investment.
by Steven P. Schinke, Ph.D.
Options derivatives for stocks and commodities come in two types: One is bought and sold in transactions
between two parties directly, while the other is traded on exchanges. The first, over-the-counter (OTC) options, are
often complex in their mechanisms and pricing, and so are negotiated between institutions with counterparty backing. Because of their singular properties, OTC options are usually not transferred. In contrast, exchange-traded options
are priced in...