Safe stock option trading strategy


Many investors use call options to enhance their investment income. Suddenly, a relatively safe stock option trading strategy blue-chip stock turns into an income machine Remember that call writing is an income-generating strategy, not a strategy to add even more stress to your investment life. They then find the volatility of the stocks a little too much to take. You can get options premiums on some companies of three or four per cent or more in a very short period. Remember that call writing is an income-generating strategy, not a strategy to add even more stress to your investment life.

Use stocks you would be comfortable owning This safe stock option trading strategy perhaps the key thing to remember. Remember that call writing is an income-generating strategy, not a strategy to add even more stress to your investment life. If you are selling options on a regular basis, every three months, those positions that have not been called away will pay you a dividend. Selling options against existing positions boosts your overall return, and provides a bit of protection but not much in a declining market. Last Updated October 9, 9:

We will not cover the basics of call-writing strategies, but here are safe stock option trading strategy strategies to consider if following this approach. Still, slightly above the money call options can return about 4. Many option writers see high premiums on certain volatile stocks usually in the technology or biotech sectorsand buy companies they are not familiar with and then sell options on them.

Selling options against existing positions boosts your overall return, and provides a bit of protection but not much in a declining market. Options premiums depend on volatility: Since call writing is designed to boost your income, selling options on companies that pay dividends can potentially boost safe stock option trading strategy even more. Another key to an options strategy is to limit your downside risk, and what better way to do that than to use companies that have no debt and lots of excess cash?

Remember that call writing is an income-generating strategy, not a strategy to add even more stress to your investment life. For example, Apple Inc. Options premiums depend on volatility: Suddenly, a relatively secure blue-chip stock turns into an income machine. Since Netflix reports earnings safe stock option trading strategy Oct.