Top Five Reasons to Sell Weekly Call Options
An amazing home based business is currently here with weekly call options. "Weeklys" turn out every Thursday and expire the subsequent Friday. There are no new Weeklys in the final week in which the monthly options expire. You can just write the next week through the monthly list.
Although Weeklys have been about since 2005, they have only been considering that the summer of 2010 that this offerings happen to be expanded to add stocks and ETS like Apple, Amazon. Intel, Microsoft, Research in Motion, Cisco and Las Vegas Sands, to name a few. On the ETF side, there are QQQQ, GDL, GDX, USO, SLV and much more, along with the SPX along with the OEX.
How Weeklys Super Size Your Trading Account
You Get to Sell 4 Times a Month!
Selling call options 4 times 30 days versus once is often a pure gift. An experienced covered call writer can earn A LOT more premium. Doubling the monthlies most of the time isn't unreasonable. Also, if you utilize a long-dated put for protection, this "insurance" might be paid for very quickly because of more writes monthly.
8 Days a Week Versus 30
Forecasting eight days as opposed to thirty can be a piece of cake; it's less difficult to look at what is happening within the week ahead. One of the biggest complaints about covered call writing 's what to accomplish when the stock really runs up along with to either forgo the elevated gains in the call option strike you sold or buy back the call at the much higher price. If this happens, it's actually a lot much easier to adjust over one week and reset once you get your trend the subsequent week.
Accelerated Time Decay
Call writers depend on time decay. With Weeklys, time decay is greatly accelerated. There are actually times that calls I obsessed about Thursday morning on introduction eroded over 30% by Monday's close. How cool is? You can write near-the-money calls or at-the-money-calls and collect the larger premiums as a result of the rapid time decay.
Skip Earnings Week and Relax
How often have you ever crossed your legs and held your nose during earnings week? Well, it's simple to just sit it out. Weeklys provide ultimate in flexibility. You can also trade good news that week before or following your event. Again, you might be in or from the market weekly. THAT is flexible.
Selling Weekly Puts for Even More Premium
Weeklys offer an astonishing chance to super size returns by selling a naked put or possibly a put spread (to limit risk and use less margin) for additional premium. Just follow normal put selling rules; sell below a strong support point, at least one strike out of your money as well as perhaps more if your premiums are good.
It's amazing how many experienced investors and fund managers don't know much about weekly options. The word is spreading. There is really a lot to learn about the different covered call writing methods for up, down or sideways markets. The more you learn, the greater you earn.Article Source: Leary is really a fulltime trader and writes (sells) covered calls, earning 3% to 5% monthly in bull and bear markets, with limited risk. To get a 50-page covered call writing report, click here. To learn more call strategies click this link
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