The week begins with the guys jumping right into their first strategy: the Covered Call. Retirement accounts, for the most part, sit passively invested through the years. Tastytrade, however, shows us the benefits of taking a more active approach to our investments. The beauty of the Covered Call is that it offers us the perfect bridge from passive to active.
A Covered Call is the combination of long stock and a Short Call. While these two parts possess both bullish and bearish characteristics, the net result is still some long bias. This mirrors the traditional retirement account that is long stock, but it does so in a "diluted" way. In the end, the trader gets to decide just how much to dilute their long exposure.
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