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What is covered call options strategy?

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Options are excellent tools for both position trading and risk management, but finding the right strategy is key to using these tools to your advantage. Beginners have several options when choosing a strategy, but first you should understand what options are and how they work. An option gives its holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before its expiration date. There are two types of options: a call, which gives the holder the right to buy the option, and a put, which gives its holder the right to sell the option. A call is in-the-money when its strike price (the price at which a contract can be exercised) is less than the underlying price, at-the-money when the strike price equals the price of the underlying and out-of-the-money when the strike price is greater than the underlying. The reverse is true for puts. When you buy an option, your level of loss is limited to the option’s price, or premium. When you sell a na...
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Generating consistent monthly income in the stock market with minimal Risk

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After a decade of experimenting with various options strategies, I have discovered a reliable approach to producing a steady 7% monthly return while protecting my investment. This strategy builds upon the principles of covered calls and calendar spreads, with a key twist. Traditional covered calls require significant capital and carry substantial downside risk if the stock price plummets. Calendar spreads, on the other hand, demand constant adjustments and have unlimited downside potential. The alternative strategy I've developed is a modified collar options strategy. It involves purchasing deep in-the-money call options with a longer expiration date and simultaneously selling at-the-money or slightly out-of-the-money call options with a shorter expiration date. Additionally, I buy out-of-the-money put options and sell way out-of-the-money put options with a longer expiration date. This approach has proven to be a reliable and consistent performer, offering a monthly return of over...
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