Anyone who likes covered calls has probably also taken a look at ratio writes. The covered call yields double-digit annualized returns with no market risk beyond ownership of stock; and so their popularity continues to grow. This claim is based on some assumptions. First, the strike of the covered call has to be higher than ...
Option Trading Explained – Introduction Robert Kiyosaki said that Option Trading is the investment of the rich. Indeed, option trading is the most versatile form of investment in the world today. Its versatility has been the topic of many speakers all over the world. Terms such as “Covered Calls” and “Credit Spreads” have become well ...
Traders have many misconceptions about options in general, but when it comes to the federal tax rules, the misconceptions are even greater. This is due to the complexity and seemingly illogical rules governing how covered calls – and profits on the underlying stock – get taxed. The “unqualified covered call” refers to a special rule ...
