CCIV - Busting Options Myths: For Covered Calls Be In The Money
- We recently wrote about options myths and a different way of trading.
- In this article, we break down myths around covered calls.
- These myths generally teach: (i) be out of the money; (ii) guess that the stock won't move much; and (iii) suffer losses if you're wrong.
- We explain why you should: (i) be deep in the money; (ii) not have to guess about price movement, and (iii) be cushioned from loss.
- We also provide a tool to determine if you're getting the right price for the options or whether there isn't enough premium to make it worthwhile.
For further details see:
Busting Options Myths: For Covered Calls, Be In The Money