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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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Buy This Retailer Trading Below Book Value

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By Christopher Speetzen   Seeking alpha Summary Hibbett Sports trades at a steep discount to book value. It operates in a difficult sporting goods market. Can it survive the Amazon economy? Hibbett Sports, Inc. (NASDAQ: HIBB ) is a small-cap sporting goods retailer operating retail stores in small- to mid-sized markets mainly in the Southeast, Southwest, Mid-Atlantic and the Midwest. Like practically all brick-and-mortar retailers over the last year, its stock has been pummeled, dropping from around $40 a year ago to ~$10 after earnings were reported Friday, August 18 th . The main question to ask is whether this drop is valid or not and whether the stock presents an opportunity at the present price. Its second-quarter results were pretty dismal: Loss of $0.15 per share. Comparable store sales decreased 11.7%. Net sales for the 13-week period ended July 29, 2017, decreased 9.2% to $188.0 million compared with $206.9 million for the 13-week period ended July 30, ...
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