Why trade it ?

Jul 9 18:23

Collect premium income

Selling a call option may give you a chance to collect a premium in the future.

Seek to increase profit and decrease loss

With the premium income, when the stock price is not higher than a certain price, the return for covered calls is better than a direct holding of the underlying stock by itself. This may help to increase returns or reduce losses.

No extra cash margin needed

Options selling requires a certain margin to open a position. Compared to selling a naked call, covered calls use the shares you hold as collateral and do not need additional cash margin payments.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more

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