Main Issues In Covered Call Options

A covered call option trading strategy involves the buying of stock and selling a call option on that stock. Generally, you would sell call options 1 or 2 strike prices out-of-the-money. Keep in mind when you sell your covered call options make sure that they are sold with short term expiration dates. Short term options are more expensive than longer term options.

When you buy option premiums you want to have as much time as possible. However, when selling an option, you desire the opposite condition.


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