tallgrass-covered-call – Learn @ OptionsANIMAL

The Leader In Options Education

Learn The Covered Call.
Easy, proven strategy for consistent income.

Why Is The Covered Call Such A Popular Trade?

First of all, this trade is really easy to understand. You own a stock, you sell a call against your stock. When you sell the call option, you are promising you will sell your stock at a fixed price and you are getting paid a premium for that.

For example, let's say you bought a stock at $100 per share. You could sell a call option that expires in 30 days at strike price 105 and get paid maybe $2.00 per share for that option. You are promising you will sell your stock at $105 in the event it rises to say $110. So, you are capping your upside here. However, you will keep the $2.00 per share of credit and still make $5.00 per share of profit on the stock. So, you would be profitable $7.00 per share in that trade overall in 1 month. Still a 7% return on investment. 

When the stock remains flat and stays at $100 per share over the course of those 30 days, instead of not making any money, you'll have the $2.00 per share of profit from the call option. Therefore, you'll still have a 2% return on investment in 1 month.

You can clearly see why this is a fantastic use of options for income generation.

There are ways to adjust the call option when the stock rises to avoid selling your stock at $105. We teach that in our paid memberships. There are also other options that can be used to give you much better downside protection, which we'd love to show you.

Learn more in a free class or call us directly at 1-888-297-9165 to schedule a free consultation.

Proven Options Strategies

At OptionsANIMAL you will learn easy, proven strategies that work when the market is up, down, or sideways.

Learn From Real Trades

Watch professionals place and manage trades so you can improve your timing on entries and exits.

6-Step 90% Successful Trading Method

Learn our method to winning 90% of the time on our trades over the past 10 years.

Traders love us. As seen in...

Privacy Policy | Contact Us | Opt-Out Policy | Disclosures

© Copyright 2024 OptionsANIMAL

If you have received promotional communications from OptionsANIMAL via email and would like to opt-out of future communications, you can click on the “unsubscribe” link located at the bottom of the email message. If you have received promotional communications from OptionsANIMAL via text message and would like to opt-out of future communications, you can respond by sending the message “STOP”. If you unsubscribe from receiving promotional communications, you may still receive transactional messages regarding Service notifications, updates to our terms or Privacy Policy, or our ongoing relationship. To opt-out of other forms of communication, you may unsubscribe by contacting us using the information in the “Opt-Out Policy” section above.

The content on any of OptionsANIMAL websites, products, or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options, and other securities involve risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities are not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See Characteristics and Risks of Standardized Options. The optionsanimal.com educational training program is provided to enlighten and enrich the understanding of its students.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Scroll to Top