Covered Calls – You are Doing it WRONG!

 

What if we told you everything you have been taught about writing Covered Calls is Wrong!

What if we told you, you had been doing it wrong this entire time?

Would you listen?

Can we convince you there is a better way?

If you can give us a short amount of your time we can show you how to get better returns, with less risk than writing your Grandfather’s traditional Covered Call.

There are so many better options (literally) than there used to be to writing a traditional Covered Call.

What we want to show you:

• You can place a Covered Call with less Risk!
• You can get a better return than you are getting now!
• You don’t need a large account to trade even expensive stocks!

Improve your Risk/Return in your Trading

A standard covered call is placed by purchasing at least 100 shares of a stock and then selling Call against that stock.

If the stock prices is greater than the Call when the Call expires you either lose your shares of the stock

or you have to buy the Call back.  THERE IS A BETTER WAY!

No, it’s not magic. Not even that difficult. You just have to be willing to learn and try a new way of trading that might take you out of your comfort zone.

We will clearly tell you how each of our strategies work and how they compare from a risk/reward standpoint to that ‘old fashion’ covered call you have been trading.

Why do things the same way if there is an easier way to increase your returns and build your account?

 

 

 

 

Here is what we are talking about when you compare the three strategies we go over in the book to a traditional covered call:

The Green is which strategy was best in each category.

These examples assume you are trading 100 shares (and/or 1 contract) of an underlying security valued at $180.66.

Cash out of your Account:

Covered Call: $17,936.00
Strategy 1: $0.00, actually brought in $160.00
Strategy 2: $0.00, actually brought in $235.00
Strategy 3: $6,445.00

Investment:

Covered Call: $18,066.00
Strategy 1: $0.00, but used $6,000.00 in buying power.
Strategy 2: $0.00, but used $6,000.00 in buying power.
Strategy 3: $6,575.00

Risk:

Covered Call: $17,936.00 – If Stock went to $0.00
Strategy 1: $17,340.00 – if Stock went to $0.00
Strategy 2: $17,265.00 – If Stock went to $0.00
Strategy 3: $6,445.00 – if Stock went to $0.00

Return:

Covered Call:   0.719%
Strategy 1:       2.67%
Strategy 2:       3.92%
Strategy 3:       1.98%

 

We could have made this book hundreds of pages long, but made a conscious decision to simply tell you how each of the strategies work and then give you a few of examples. Why make you pay for repetitive information or make you read the same information over and over just for a bigger book?

But, don’t worry. If you want more information about how we trade we give you access to a way to get that in the book … and it is included with the in the book price! 

BONUS: We also put a free Strangle Strategy at the end of the book!