If you’re a long-term stock investor, you probably have a mix of mutual funds, index funds, and maybe some individual stocks in your portfolio.
The stock market historically moves up and to the right, so your portfolio increases in value each year. But does it ever exceed index returns?
By writing call options against your stock holdings, you can increase your portfolio returns – well above the indices.
This isn’t magic. It’s a real strategy that anyone can use!
What are covered calls?
This is an options trading strategy that involves selling a call option on a stock you already own.
In simple terms, this means you are giving someone else the right to buy your shares at a set price within a specific timeframe, while receiving a premium (cash) for doing so.
While it might sound complex if you’re not familiar with options trading, writing covered calls is a simple strategy designed to generate additional income from assets you already own.
In the tutorial, we use IBM stock as our example.
Because IBM pays a nice dividend each year, writing calls against the stock four times per year could push your income from 3% (the current dividend yield) to nearly 12%!
You do not need to have any options trading experience to use a covered call strategy.
You do not need to have any options trading experience to use a covered call strategy.
- Manage their portfolios themselves (rather than work with a financial advisor)
- Understand how to leverage a new trading strategy
- Dip their toes into options trading
- Keep their risk on the low side
This tutorial covers the basics you need to get started, including:
- What covered calls are
- Why options trading provides much more leverage than stock trading
- How to set yourself up for successful trades
- A detailed covered calls trading example
And so much more!
Your returns could be in the double digits – for ONE stock
And the best part? This options trading tutorial is FREE!
So don’t wait, download it today!