By Brian M. Reiser Selling covered calls is an options trading strategy that helps you to earn passive income using call options. This options strategy works by selling call options against shares of a stock that you buy beforehand or already own.
This strategy is called “covered” because you already own the stock at the outset – you don’t need to purchase the shares on the open market at the expiration date at a price you may not like.
In addition to helping you earn passive income, this strategy can also help protect you against downside risk. Therefore, it can serve several purposes at once.
In this …read more
