In exchange, you collect a premium upfront. With call options, you're promising to sell a stock at a certain price, even if it rises much higher. While selling options can create consistent income ...

When a speculator buys to open a call option (known as a "long call"), it's a bet the stock will rise above that strike price prior to expiration. Conversely, when a trader sells to open a call ...

In this video, Marco explains how to generate income from shares you already own by writing covered calls and cash-secured ...

The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer before it expires.

Selling a covered call means writing a call option against shares of a stock that you own. This combination has the same risk profile as selling a naked put option, and so it exposes you to ...

While Microsoft's current dividend yield is modest at 0.76%, you could generate additional income by selling one call option. By selling a covered call, you grant the buyer the right, but not the ...

Generally you would buy a call option if you expect the stock's share price to rise between now and the end of the contract. When that happens, the value of the option rises and you can sell for a ...

Alibaba stock soared 29% following its AI advancements. Learn why it's a Hold now amid volatility spikes and earnings risks.

The fund manager will also typically sell call options on the underlying index. Call options give the holder the right to buy the index at a specified price. This means that if the index rises ...

However, selling call options caps the strategy’s upside because it won’t participate in S&P 500 gains beyond the option’s strike price. This detracts from performance in market rallies or ...

The WisdomTree PutWrite Strategy Fund seeks to generate consistent income by selling put options bi-weekly and investing in U ...