Covered Calls in Volatile Times

The covered calls strategy works very well during volatile markets. It
has the advantages of pulling a monthly income from a stock without
having to predict each swing that may occur.
There are 3 major benefits to covered calls as a neutral market
strategy.
1. Sometimes trading Directionally Can be Hard
When stocks are flat and range bound it can be hard to trade the
trends or swings. You need some other way to profit in a range bound
market, and covered calls can give us a great way to do that.
By selling a call on a stock you do not need the stock to do anything
for you to be profitable. Once more you can sell another call on the
same stock month after month, creating a somewhat steady income from
it.
2. Easier to get the hang of
It is easier to get the hang of selling covered calls then it is to
get the hang of swing trading or day trading. Some strategies can be a
lot of work and time heavy to keep going. Most strategies to beat the
market take a lot of research or a lot of time looking at a chart.
Covered calls on the other hand can be very profitable will a minimal
amount of work. And it may only take 5 minutes a month to manage a
covered call position.
3. It can help lessen a bad move
Selling calls off of a long term position can help you lessen the
impact you feel if the stock market crashes. The premium you make can
also be used to buy more stocks after the crash.

Trading Secrets Turn $10,000 Into 2 Million Dollars Within 18 Months:
http://www.ndshtrading.tk/

--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups "Forex Trading / Predict Forex" group.
To post to this group, send email to forex-trading--predict-forex@googlegroups.com
To unsubscribe from this group, send email to forex-trading--predict-forex+unsubscribe@googlegroups.com
For more options, visit this group at http://groups.google.com/group/forex-trading--predict-forex?hl=en
-~----------~----~----~----~------~----~------~--~---