Information on covered calls

This is a discussion on Information on covered calls within the First Steps forums, part of the Reception category; Hi. My name is rupen and i'm new to this site. I have traded on the forex in the past ...

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Old Jul 13, 2008, 7:33pm   #1
 
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Joined Aug 2004
Smile Information on covered calls

Hi.

My name is rupen and i'm new to this site.

I have traded on the forex in the past with some joy and also made bets on the movement of the index's.

I'm now reasearching on what selling covered calls has to offer.

If anyone can point me in the right dirrection I would be grateful
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Old Jul 14, 2008, 10:09am   #2
Joined Dec 2003
1) Make sure you understand what volatility is, how it works and what role it plays in the pricing of options, and

2) realise that covered calls is EXACTLY the same as selling a naked put.

If you don't understand both of those points and I mean REALLY understand them, DON'T GT INVOLVED IN OPTIONS.........
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Old Jul 14, 2008, 2:23pm   #3
 
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Quote:
Originally Posted by anley View Post
2) realise that covered calls is EXACTLY the same as selling a naked put.
???
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Old Jul 21, 2008, 6:02pm   #4
Joined Apr 2005
Try the link below for information on covered calls.

Covered Calls
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Old Jul 21, 2008, 6:56pm   #5
Joined Apr 2006
Quote:
Originally Posted by anley View Post
1) Make sure you understand what volatility is, how it works and what role it plays in the pricing of options, and

2) realise that covered calls is EXACTLY the same as selling a naked put.

If you don't understand both of those points and I mean REALLY understand them, DON'T GT INVOLVED IN OPTIONS.........
I would not say selling a covered call is EXACTLY the same as selling a naked put. Close, but your risk parameter is skewed depending on your strikes and premium generated.
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