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Covered Calls — improving the odds of a modest profit

Tuesday, December 29th, 2009

Mainstream investors buy assets they think will go up.  If the asset price stays the same or goes down the investor gets no profit or a loss.   Covered calls are a way for investors to show a modest profit if:
  1. The asset goes up in price
  2. The asset price stays the same
  3. The asset price drops a relatively small amount


One of the catches (and there are always at least one), is that the investor gives up some upside.   Read More