Category: Covered Call Writing

3 Covered Calls For Long-Term Buy-And-Hold Stocks

3 Covered Calls For Long-Term Buy-And-Hold Stocks

Use covered calls for these stocks that delivered earnings disappointments Covered calls are options trades that have a lot of utility. They can generate additional monthly income, which is how I utilize them in my stock advisory newsletter, The Liberty Portfolio. They can also be used to hedge long positions. However, in some cases, they can also […]

Continue Reading

The Perfect 10% Payout For A Toppy Market

| August 9, 2017 | 0 Comments
The Perfect 10% Payout For A Toppy Market

Worried about a pullback? I don’t blame you. But you shouldn’t stash your portfolio in cash when you can bank this 10% dividend and be protect yourself from a drop in the stock market. Rather than buying stocks for their payouts and hoping they don’t crash, you can extract more money from them – and protect your […]

Continue Reading

3 Big-Money Option Trades

3 Big-Money Option Trades

These 3 options trades are risky, but can offer nice premiums and a hedge Covered calls and naked puts can be very effective tools to both generate income and hedge long positions in any kind of stock. For some expensive stocks, however, they can offer very high premiums if you are willing to take on […]

Continue Reading

3 Covered Calls To Hedge Risky Stocks

3 Covered Calls To Hedge Risky Stocks

You can earn very big money with these covered calls, but beware, because these stocks are ripe for a fall When it comes to growth or momentum stocks, there are some investors who don’t care about risk. They just buy up the big names and let it ride. Certainly there is some merit to this […]

Continue Reading

The Beauty of Covered Calls

The Beauty of Covered Calls

My goal and my promise to Peak Income readers is to secure for them a high and stable income stream, no matter their situation: in retirement, close to retirement, or just even thinking about retirement. I want paychecks to hit brokerage accounts every month, with consistency and low risk and without worry. No wonder I’m […]

Continue Reading

3 Options Trades That Will Protect You From Harm

3 Options Trades That Will Protect You From Harm

Sell calls against a long position and use the money to buy puts I’m not trying to sound the alarm and get everyone rushing for the exits, but according to the Shiller price-to-earnings ratio, the stock market is now the third most expensive it has been in history, behind only the market of 1929 and […]

Continue Reading

Target Covered Calls? 3 Better Options For High Income

| March 31, 2017 | 0 Comments
Target Covered Calls? 3 Better Options For High Income

As income-focused contrarian investors, we like to buy high-yield stocks when they are out of favor. However, this is a guideline, not an absolute rule. Case in point, Target (TGT). Despite this company’s relatively high yield (4.5%) and significant underperformance (see chart below), we are not interested in owning shares, and that includes not owning […]

Continue Reading

3 Covered Calls To Guard Against The Impending Drop

3 Covered Calls To Guard Against The Impending Drop

Use covered calls to hedge against a market correction, large or small If you subscribe to the Shiller price-earnings ratio, then the associated graph should sound alarm bells. According to the graph, stocks are the most expensive in history, save right before the stock market crash of 1929 and the dot-com bubble. If you have a […]

Continue Reading

How To “Write” Covered Calls For Safe 8% Yields

| February 24, 2017 | 0 Comments
How To “Write” Covered Calls For Safe 8% Yields

Most investors buy stocks and hope they’ll go up in price. They do nothing in the interim to generate cash flow from those stocks while they sit in their portfolio – like writing covered calls. “Write” what? I’ll explain. And I’ll also highlight some popular exchange-traded funds (ETFs) and closed-end funds (CEFs) that will help […]

Continue Reading

3 Covered Calls To Cash In On Blue-Chip Stocks

| February 15, 2017 | 0 Comments
3 Covered Calls To Cash In On Blue-Chip Stocks

Using covered calls to generate income can be a safe way to enhance fixed income Options are still considered rather exotic securities by the average investor, and in some ways, that’s a good thing. They can be exotic and there is a higher degree of risk associated with them, depending on what one’s investment goals […]

Continue Reading

3 Covered Calls To Drop A $1,000 In Your Bank Account

| February 1, 2017 | 1 Comment
3 Covered Calls To Drop A $1,000 In Your Bank Account

These three covered calls will generate a grand over the next month To me, covered calls serve two really solid purposes when it comes to using this strategy in a long-term diversified portfolio, such as the one I’ll be building in my upcoming stock advisory newsletter, The Liberty Portfolio. Covered calls can be used as […]

Continue Reading

Double Down On Dividends With These 3 Covered Calls

| January 18, 2017 | 1 Comment
Double Down On Dividends With These 3 Covered Calls

You can generate income by selling covered calls and collecting a dividend One of the best options strategies, as far as income is concerned, is using covered calls. This strategy involves first buying or already owning a stock in round lots of 100 shares. You then enter into a contract to sell 100-share lots to […]

Continue Reading

3 Covered Calls For $1,000 In New Year’s Cash

| December 7, 2016 | 0 Comments
3 Covered Calls For $1,000 In New Year’s Cash

These 3 covered calls on small-cap stocks will yield fantastic premiums for your post-Christmas bill pile-up Now that we know Donald Trump has won the election, despite all the nonsense over electors not casting their assigned votes, we can get down to business selling covered calls on some unloved financial stocks. These little guys have […]

Continue Reading

Covered Call Technical Analysis

| March 2, 2016 | 0 Comments
Covered Call Technical Analysis

When it comes to covered call trading, technical analysis can be a key factor. The primary risk with covered calls is that your stock will have a sharp move lower, so sticking to stocks in well defined uptrends can help minimize (but not eliminate) that risk. So how is an uptrend defined? An uptrend could be […]

Continue Reading

The Benefits Of Using Covered Calls

| November 6, 2015 | 0 Comments
The Benefits Of Using Covered Calls

The Benefits Of Using Covered Calls Covered calls are an extremely popular yet often misunderstood options strategy.  This strategy is widely used by retail and institutional traders alike.  However, I frequently feel the strategy is misrepresented, and sometimes poorly executed. You see, a covered call strategy seems simple in theory (and it certainly can be).  […]

Continue Reading

The Best Time For Using Covered Calls

| October 23, 2015 | 0 Comments
The Best Time For Using Covered Calls

The Best Time For Using Covered Calls There probably isn’t an options-related topic as misunderstood – yet extremely popular – as trading covered calls.  Covered calls are widely used by retail and institutional traders alike.  However, I often feel the strategy is misrepresented, and sometimes poorly executed. You see, a covered call strategy seems simple […]

Continue Reading

A Better Way To Trade Gold And Silver

| May 20, 2013 | 0 Comments
A Better Way To Trade Gold And Silver

It’s been a rough year for precious metal investors.  Both silver and gold have fallen nearly back to their late 2010 levels.  In fact, gold’s down nearly 20% year-to-date.  And, silver’s been hit even harder… down over 27% for the year. I’m not going to get into why the metals are selling off.  That’s not […]

Continue Reading

Covered Calls: Catch More Upside With A Buy-Write Strategy

| February 11, 2013 | 0 Comments
Covered Calls:  Catch More Upside With A Buy-Write Strategy

The S&P 500 has gone up six weeks in a row and it’s trading near multi-year highs.  Despite the strong performance, investors are becoming more bearish.  According to the weekly sentiment survey from the American Association of Individual Investors, bullish sentiment has fallen nearly 10% over the last two weeks.  It’s the largest decline investor sentiment […]

Continue Reading

Covered Calls: Cash In Before Fiscal Cliff Part 2

| January 7, 2013 | 0 Comments
Covered Calls: Cash In Before Fiscal Cliff Part 2

Last week investors sent stocks soaring higher once it became clear a deal would be made to avoid the fiscal cliff. The S&P 500’s 4.5% surge was one the indexes best weeks in years.  It also pushed the large cap index to its highest close since 2007. But we’re already beginning to wonder how long […]

Continue Reading

Covered Calls: Shopping For Big Returns On Small Price Gains

| November 26, 2012 | 1 Comment
Covered Calls: Shopping For Big Returns On Small Price Gains

Holiday shopping is in full swing… Retailers are hoping the introduction of more branded shopping days will entice consumers to spend more money than ever. It began with Black Friday, the day after Thanksgiving.  Then Super Saturday, the Saturday before Christmas popped up.  And then the internet gave rise to Cyber Monday, the Monday after […]

Continue Reading

Covered Calls: How To Generate Profits In A Flat Market

| March 22, 2012 | 1 Comment
Covered Calls:  How To Generate Profits In A Flat Market

Stocks are having an epic first quarter of 2012.  The S&P 500 has surged 145 points so far this year.  That amounts to an eye-popping 11.5% gain for the large cap index. No doubt about it, investors are happy to see stocks on the upswing. But here’s the thing…  At the beginning of the year, […]

Continue Reading

Covered Calls

| December 8, 2011 | 4 Comments
Covered Calls

Covered calls are involved in a strategy that combines a long stock position and a short call option. The call options are sold in equal amounts against the long underlying shares.  The strike price and expiration date of the calls can be chosen based on investment objective, market view and risk appetite. When you write […]

Continue Reading