Covered Call Trading: Strategies for Enhanced Investing Profits
$7.06
Covered Call Trading is all about how you can become a better trader through stock options. Specifically, it’s about covered calls and how you can make the most from this trading strategy.
Author’s Note:
I hate finance textbooks. They either go into the hard math behind derivatives, or stick with super high level concepts. In essence, it’s very hard to get practical, actionable information from “traditional” finance learning channels. This book will give you real-world applications about covered calls and related trade strategies, along with potential trade screeners and risk management techniques. That’s the extra edge you need, and the edge that this book gives you. To become a successful trader, it’s not about a high win rate or about hitting homeruns. It’s about consistency.
Covered calls are a strategy to reduce risk, enhance returns, and give you an edge in the market. This strategy will make you more consistent as an options trader and investor. The problem with covered calls is that this strategy includes options, which means that there are additional risks. If you understand the risks involved, then you can look for actionable trade ideas.
And aside from trade ideas, you need a sound strategy from picking the right stocks, picking the right options, and knowing how to manage your risk. We will be going over all of that. I’ve taught and mentored hundreds of options traders, so I know what novice option traders need when it comes to mastering key options concepts. I also know why you don’t even want to consider covered calls.
Contents:
- Risks and Rewards
- Why Trade Covered Calls?
- The Downsides of Covered Calls Key
- Covered Call Metrics.
- Exmple Basis Calculations
- Covered Call Greeks
- The Major Tradeoffs
- A Secret Strategy
- What Plays to Avoid
- Designing Covered Call Screeners
- A Baseline Screener
- An Alternative List
- Some Trading Systems
- A Covered Call Lifecycle Map
- Delta Band Trading
- Trade Examples
- Wrapping It Up
Covered Call Trading: Strategies for Enhanced Investing Profits By Steven Place pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 115 |
| Publication Year | 2013 |
14 reviews for Covered Call Trading: Strategies for Enhanced Investing Profits
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Annabella Gomez (verified owner) –
Good book to start with covered launch trades
Beware of throwing naked puts. They can bring great losses
Raelynn Mills (verified owner) –
The book did not cover the topic, it rambled on and on way off the topic, dealing with puts which have nothing to do with covered calls.
Malaysia Lucero (verified owner) –
As an engineer, I hoped this book by an engineer would be pretty good for my use. It isn’t. It is very poorly written.
Many engineers communicate poorly and the author seems to be one of them. If you already know the subject well, you can read this book. If you don’t, good luck. I know enough of the subject to read the book, but just barely. Basic concepts are hardly touched. Others are introduced with little context, often well before they are of use. The author even switches between price per share and price per trade (nominal 100 units) inappropriately, leaving one a bit confused until you add up the numbers and figure out what was done.
As just one example, the author starts out the section on covered call trade scenarios with an example using a naked put. Huh? Again, if you are familiar with this stuff, you can sort it out, but I pity someone new to covered calls who runs into this section.
Ansley Woodward (verified owner) –
the guy can’t make $$$ for you so move on
Baker Faulkner (verified owner) –
Excellent strategies, layouts how to enter & close trades, has helped me use screener to find better trades than I was doing before.
Carmen Turner (verified owner) –
Very good book to teach you how to use covered calls in your long term investments like a retirement account that you manage yourself. You will be ahead of the game if you use covered call strategies during the life of your account.
Alex Fitzpatrick (verified owner) –
This book has opened my eyes for using the right criteria to be put the odds in my favor. The book is easy to read with clear and concise terminology to help even most novice investor get started trading covered calls. It took no time at all to read and provides specific setups in a recipe like layout. Now let’s start cooking!
Felipe Wyatt (verified owner) –
This book spells out covered call trading in clear terms with many good examples and is suitable for beginners as well as more experienced traders. I especially liked the screening specifics and suggestions for initiating positions, then using option deltas to manage the positions as they mature. So, if you want to do covered call trading, this book is extremely helpful and well worth reading!
Liberty Hurst (verified owner) –
Highly recommend reading this book as a review of covered calls. Excellent rules to follow for adjusting the trade and a nice spreadsheet to keep track of them. Also easy reading.
Jeremias Singleton (verified owner) –
Shallow. Does not discuss the advantages and disadvantages of deep in the money calls. Try another source if you want depth.
Macie McCann (verified owner) –
I still find this subject a bit like black magic. If you understand the concepts it should help you but you can get burned if not questioning the theory and concepts.
Heath Barnett (verified owner) –
Getting back into options trading and this was excellent read to brush up on my knowledge of options trading .
Harlow Hartman (verified owner) –
So many Web sites and seminars make writing covered calls sound like a no-brainer, when in reality it is often a great way to leave a lot of money on the table while simultaneously enriching your options broker. Covered Call Trading looks at not only the rewards but also the risks.
I really appreciated the walkthroughs of trades that worked and ones that didn’t. Also helpful were the diagrams that mapped out the lifecycle of a covered call trade. Options trades need to be managed over time, and buy-and-hold equity investors need to grasp this concept before wading into the options market.
This book is a quick read, but it is packed with information and examples. Place explains sophisticated options concepts in a way that gives readers an intuitive feel for what is going on. This book gives investors who are willing to do the hard work of developing a strategy the tools to execute it.
I downloaded this book for free, but I recommend it to any individual investor who is considering writing calls against their portfolio holdings. Compare the value of this book to the cost of spending an afternoon in a hotel ballroom listening to your broker tell you how great covered calls are. Then too, if you are a more experienced options trader asking yourself why on earth would I bother with covered calls, this book may give you some fresh ideas.
Neil Russell (verified owner) –
Good for starting traders