Traditionally, conservative investors have shied away from the options market believing it to be too risky. But there is one strategy, if followed correctly, that has the potential to produce superior returns; while at the same time protecting investors from market downturns. The strategy is known as covered call writing. This simply means that investors holding the shares of a company can sell the option to buy those shares at a predetermined price (known as the strike price) by a particular date (the strike date). The restriction here is that the number of options sold cannot exceed the ...
More..John Takarabe
Member since: May 2008
Articles Written: 1