Schlagwort:invest

Bull Market Makes For Prudent Covered Call Investments

Rising markets are good for investors who own long stocks. And covered calls are good for creating monthly income. Buy why would you want to set a limit on your upside (by writing a covered call) when stocks are going up? Well, there are a few reasons. Perhaps you are investing around a news event? Or trading on margin? There are valid arguments to be made for increasing your safety net and taking a potentially smaller gain. Here are some of the reasons why you may want to consider selling covered calls as stocks are going up:

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Why Write Covered Calls

Everyone enjoys receiving dividends. Much like receiving interest, dividends are pure passive income. The best kind of income. You get paid no matter what you’re doing — reading a book, listening to the radio, on an airplane; it doesn’t matter, you still receive the dividend. There is another kind of security that behaves almost the same way — covered calls.

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Choose The Trading Stock Options That Are Right For You

There are a wide variety of trading stock options for investors to take advantage of depending on the amount of risk they are willing to take. There are some strategies that are simple to follow and others that are more sophisticated and quite complex. Conservative strategies are typically safe and require a low amount of risk. Other options are riskier but the return rate has the potential to be quite high. Regardless of how much risk the investor is willing to take, there is a suitable stock trading option available.

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