Information on covered calls

[rupen]

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

 

[anley]

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.........

 

[arabianights]

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

???

 

[tech_trader]

Try the link below for information on covered calls.

Covered Calls

 

[covered_call]

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.