Options Jive

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Covered Calls: Where Do You Want the Stock?

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

The covered call strategy is essential to both passive investors who are simply stock picking and active investors who are attempting to play direction and options prices. In today’s show, the guys bring viewers from A to Z with covered calls by showing them how to set the strategy up along with when they like to employ it, as well as showing viewers what might happen and how to manage it.

After a conversation concerning the strike price of the call and the probabilities of success that go with that decision, Tom gets to the meat of the segment – where does he want the stock to land? He and Tony play devil’s advocate with how poorly this strategy can go, and then they talk through the different management techniques that concern profitable situations for the covered call.

Watch the segment above to see what these seasoned traders think of covered calls and what they want the stock to do when using this beginner strategy.

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