A covered call keeps nearly all of the downside and caps the upside. A worked example of both risks, early assignment, and the Keep, Cap, Collect test.
Forex, stocks, crypto, options and commodities – what you trade, as opposed to how.
Markets & Products
Forex, stocks, crypto, options and commodities – what you trade, as opposed to how.
All articles, page 2
What assignment and auto-exercise mean, what happens at expiry, and how to choose between closing, rolling or taking the shares, with a worked example.
A checklist before buying a stock: 7 questions to ask in 60 seconds, for traders and investors, so you never buy on a feeling again.
A call is the right to buy, a put the right to sell. How each one makes or loses money, with a worked example and the 3 things every option…
The wheel strategy stage by stage: cash-secured puts, assignment and covered calls, with the arithmetic shown and the one way it breaks, the stuck wheel.