A call option is a contract that guarantees its owner ... Covered calls are usually written by investors who are long on a stock (i.e., they own it and don’t plan to sell it in the near future ...
See how we rate investing products to write unbiased product reviews. Call and put options give you the right to buy and sell shares of stock at a set price during a specific period. You pay a ...
If you're interested in options trading, one of the first things to learn is the difference between call and put options. You'll see these terms used all the time, so understanding them is a must.
A call option is a contract that gains value when the underlying stock rises. In the most basic sense, then, a call option is a bet that the underlying security will rise in price, enabling you to ...
The fund collects the option premiums and distributes them to shareholders in the form of high yields. The downside is that layering a written call option on top of a position alters its return ...
You may also decide to roll up if you've written a covered call, and the stock has made a move higher that puts you at risk of potential assignment. The existing short option will be bought to ...
Thus, option income from calls written on the more-volatile, tech-laden Nasdaq and small-cap Russell 2000 Index tends to support higher monthly yields than on the less-jumpy Dow Jones Industrial ...