Tag Archives: Covered calls

How Screeners for Covered Calls Transform Worthless Options into Income

Covered call writing is one of the less risky forms of investment. In this strategy, an investor sells a contract for a stock he or she owns. The investor gets a premium for the contract, with an obligation that the buyer can exercise at a later date.  The investor not only gets a premium for selling the call, but can also get back the stock sold if the buyer finds the stock price lower than the strike price. This investment strategy can seem complicated, particularly for novice investors. This is why Barchart.com is offering a top call screener on the market, helping investors more effectively determine the best calls for price and time range.

Barchart’s Call Screener allows users to find the optimum covered calls for their own personal trading strategy. It also helps them choose contracts that are most suited for their portfolio. The screener helps traders generate income from expiring call options.

Call screeners are technical premium products that are valuable for equity option traders. The screener available at Barchart.com has a search button for equity symbols. It also offers profitability calculations, including downside protection, returns if the stock price remains unchanged, and yearly return if flat. Additionally, their screener filters by market and exchange capitalization, enabling users to filter information based on soon-to-be released earning reports in order to enhance downside protection. Users can also filter calls by stocks having the highest dividends.

With call screeners, traders can have a better understanding of the market. This enables them to maximize their trading gains. Call screeners are highly recommended to investors who are motivated to buy covered stocks, as well as those who want to hold on to their shares.

Screeners help investors save time and are easy to use. Some of the best screeners available online have user-friendly interfaces. The pages update immediately, sparing users from the hassle of clicking the search button and waiting for the page to refresh. The bottom line is that screeners make it more convenient for traders to identify candidate-covered stocks and enhance their chances of receiving profits from calls. And Barchart.com has the best screener available. Get thirteen different screeners, including tables for volume leaders, top trading stocks, stocks that have reached their all-time highs or lows, and 52-week highs with your subscription. Start your free 14-day trial now, and experience earning the premium income if options expire worthless. Learn more by visiting barchart.com.

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The Basics of Writing, Selling and Buying Covered Calls

Prices of securities can go up and down in a matter of days. The volatility of prices is one of the main motivations for traders to engage in covered calls. By writing covered call options, a trader sells the rights to a security, such as a stock, for an agreed price (also known as a strike price) at a predetermined date. In return, the trader is paid for it with a fee that is called a premium. However, the premium also means that the buyer can own the stock in the future if he or she exercises the option. This usually happens when the price of the stock becomes higher than its strike price. Like all other investment strategies, covered call transactions have fees with commissions for the individual that sells the call, as well as the individual that purchases the stocks.

Traders who write calls not only want to gain extra income from the premiums, but they also hope to keep their securities. They hope that the price of the stock will remain lower than the strike price. This means the option buyer will not be encouraged to proceed with the option. When the covered call option expires worthless, the seller gets to keep both the premium and the stock shares.

Most of the traders who opt for covered call writing don’t want to lose the shares of stocks they own. They feel that the value of stocks they own won’t increase significantly in the future, especially on or before the call option expiration date. If the price of the stock they wrote a covered call for suddenly goes up, then there’s a big possibility that the option buyer will exercise the option, thus meaning the call option writer lose his shares.

The risk  of entering a covered call option is that the call writer may not only lose the shares of stocks but also a great income opportunity in case the stock value suddenly increases. If the stock’s price goes through the roof, then the option buyer will naturally exercise the option. This means the seller will lose his shares, as well as an opportunity to gain more by selling the shares.

Covered calls can be a very strategic investment move for any trader, but just like any other investment move, traders have to study their options before entering into a covered call options agreement. A screener may help improve traders’ chances. Sign up for a free trial for a call screener at barchart.com.

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Better Understand Covered Call Options with Premium Services

Investing in the stock market has become easier these days with the advent of the Internet. In the past, investors and anyone else who had an interest in purchasing shares of stocks of publicly listed companies had to go through stock market brokers in order to receive information concerning market trends. However, with the help of financial websites this is no longer the case. Investors that buy and sell shares of stocks can be instantaneously updated about the latest prices of stocks, as well as other activities that impact the stock markets. Stock market websites also have relevant information and services for covered calls and other investment strategies. Covered call options and futures stocks are some of the more frequently used investment strategies of investors hoping to maximize profits.

Stock market websites are rich in information and tracking tools that investors will find very useful. The best stock market websites are updated regularly to show the current prices of stocks. This feature is particularly important for investors, especially those who wait for any substantial increase in the prices of their commodities before selling their stocks. The best stock market websites also have an end of the day listing of stock market prices that are often of use to investors who cannot monitor the updates during the day.

These websites often offer free membership to interested investors and market watchers. This makes it easy for anyone to enjoy the benefits of signing up and becoming a member of these websites. Some websites, however, charge an extra fee for premium services.

As mentioned before, creating covered call options is a type of investment strategy that wise investors utilize in order to gain extra income on shares of stocks they own.  This investment move is employed by investors who feel their stocks won’t increase in value in the next few months. By entering into an agreement, a stockholder agrees to sell a stock for a designated strike price and gets to pocket the premium if the shares trade below the strike price once the due date lapses. If the shares trade above the strike price, the option is exercised though the investor’s upside is kept at the agreed price.

Covered calls can be quite confusing for neophyte investors, which is why websites like Barchart are useful tools. For more information about the stock market and premium services like covered call screeners, visit Barchart online at barchart.com.

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