Why I Love Covered
Call Writing
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Hello, I'm John Brasher,
CallWriter Publisher.
If you are ready to learn a conservative, simple,
easy-to-follow stock option trading strategy that
can be profitable pretty quickly, CallWriter is
the place for you. No exotic or complex strategies
are involved. You don't use margin or leverage
(unless you so choose - most don't). You are not
required to trade directionally or time the market.
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Reasons
to Write Covered Calls
There are many reasons to write
covered calls... way too many to list on a single web
page. But here are some of the main ones:
Covered calls generate consistent
income, like a home-based business.
Done properly, and with trade discipline, covered call
trading generates a consistent income. You only need
a computer and Internet connection (and CallWriter)
for success. No vehicles, offices, employees, insurance…
a terrific business right in your home. Consistent trading
success results from consistent habits. You can do this.
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I'm using CallWriter for my trading and it's like
a home based business. That's exactly how I treat
it, like a business. That's what I do now. I'm retired
and I fish and I trade. All I need is my trading
deck and your service. This is a bargain, Johnny
. " James Roberts, N. Carolina |
Covered calls
are more
conservative than just owning the stock.
The stream of premium income obtained from writing
covered calls actually reduces the risk of owning the
stock. So sayeth the Chicago Board Options Exchange
(CBOE), the largest US option exchange. If you're
like me, you love the idea of using a conservative strategy
that generates a substantial, consistent income.
It is a
non-directional strategy
that can win no matter what the market is doing.
Sure, some markets are fatter than others, and sometimes
(rarely) you have to stay on the sidelines, but it is
seldom that we cannot write covered calls. We're
not betting on a stock's direction. You don't
to be a stock timer and don't need any timing
method to be successful with covered calls.
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| "I
have been successfully using your CallWriter covered call
system for a few years and it works well in a rising market,
flat market, and even a choppy market." D.
Strohl, Indianapolis, IN |
We
sell call options to speculators trying to time
the market.
Market timers who buy calls and puts are wrong most of
the time, which means sellers of covered call writers are
right most of the time. I win if I win, and I win if I draw;
directional traders don't.
A covered call has few
moving parts and is easy
to understand.
Some trades are complex, and some people prefer complexity
(we all know a few). But a covered call just involves buying
a high-quality stock and selling call options against it for
premium income. Nothing fancy – and very easy to understand.
It's not rocket science. You can do it. I explain
this simple strategy in simple detail in Writing
Covered Call Options .
Our covered call trading
method is intuitive and
easy to learn.
Everything I teach about covered call writing is common-sense
and simple, and I wouldn't have it any other way. Specialized
training and years of trading experience are not necessary
for success. It is among the very easiest trades to learn
and execute. In fact, it's ideal for new or inexperienced
traders, but old salts like it, too.
| "For
those who are still in doubt about call writing, all I
did was follow the call writing rules on your site and
read the Trade Coach [articles] religiously. Thank you
indeed for your wonderful service." S. Gardner,
Dubai, United Arab Emirates |
Covered calls are
very forgiving; easy to manage
when the stock moves wrong.
Simple trade management strategies make it easy to keep
covered call trades on a profitable course. Learn how you
can win even when the stock loses. Most strategies for stock
option trading aren't nearly so forgiving (or consistently
profitable).
• Time
is on your side
when writing covered calls.
The covered calls we sell eventually expire, which locks
in our profit. Time is our friend. But time is the enemy of
the option buyer. Call options lose a little value
every day, and we call writers use this decay in value to
our benefit. When calls expire, all of their value evaporates
– right into the accounts of us covered call writers.
• Covered calls make
maximum use of time decay
for maximum profitability.
You know now that stock options lose a little value every
day. But even better, they lose the greatest percentage of
value in the last month of their existence. This is why we
generally sell options with 30 days or less remaining before
expiration. We are maximizing the time value we put in our
pocket and making maximum use of the time decay in option
value.
• There are many covered call
strategies - a flexible,
yet simple strategy.
There are indeed many ways to approach covered call writing.
We start you out with the simplest and in many ways best strategy
– sell calls with high premium on the best companies,
when the companies are not facing a major event or crisis.
How hard is that? You can add the fancy stuff (though only
if you want) as you learn it.
• Covered call writing -
a strategy you can do for a lifetime.
Hot new strategies come and go, and the market adapts
to them. Or the market evolves in a different direction. Either
way, a lot of hot approaches that used to work - don't anymore.
Covered call writing is different, since we're betting with
the house. For 30 years now, covered writing has worked like
a charm. It is not a flash-in-the-pan strategy but one you
can use all your life.
| "I'm
a long time subscriber and have used the info on the lists
for many trades. I average about 5% per month on my money
with covered calls, which I am extremely happy with. Thanks
again for the upgrades and keep up the excellent work."
D. McAlister, Overgaard, AZ |
I urge you to try covered call writing, with CallWriter,
today. I think you''l find that it's just your speed. Nobody
makes it easier than CallWriter.
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