Covered Call Writing – A How To Guide
Introduction to Covered Calls A call option gives the holder the right to buy a security at a certain price (the strike price) by a certain date (the expiry date). Writing (selling) options is a strategy used to protect portfolio’s and also pick up additional income. It is ideal for long term investors who want to protect their shares without selling them. Only 15% of options are exercised and the rest are either closed early or expire worthless. An option …