Covered Calls 101
Covered Calls FAQ
Examples
Glossary
Advanced Education
Puts
Naked Options
Calls vs. Puts
References










Benefits of Covered Call Writing

1. Provides a way for investors to make money on a stock even if the stock falls or does not move. Since you are receiving a premium “up front,” the stock price can fall slightly and you can still profit.

2. Provides a cash flow. Investors can see an income stream from their transactions since the premium is “paid” into your account almost instantly.

3. Provides investors a way to potentially compound their money each month rather than each year. Compounding your money is where the real gains take place. To see how your investment can grow with compounding interest, click here

4. Provides investors a way to lower the price they have already paid for stock. If you have purchased a stock and watched the price fall, you can write a covered call and receive a premium. This premium has essentially lowered the price you have paid for the stock.

The secret to successful covered call writing is to invest in good stocks and focus on consistency, not on high returns. Investors will see high returns when their investments grow over a period of time. WinningInvestments.com researches stocks and provides you with six different categories of covered call selections to choose from, depending on your risk preference. However, WinningInvestments.com does not make RECOMMENDATIONS, we just screen stocks for you, and provide you with a good starting point to finish YOUR own research.

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This is Chapter 7 of 10


  1. Introduction
  2. Definition
  3. Understanding Options
  4. Key Terms
  5. The Basic Concept
  6. The Simplified Covered Call Process
  7. Benefits of Covered Call Writing
  8. Risks of Covered Call Writing
  9. Calculating A Return
  10. Getting Started



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