Introduction:
Executing a covered call strategy involves selling call options on a stock you own. It's a popular method to generate income on an existing equity position. However, key to the success of a covered call is the selection of the appropriate strike price. This article explores the different strike price options for covered calls and their implications for your investment strategy.
Deciding on the Right Strike Price:
At-The-Money (ATM) Strike Prices:Selecting ATM strike prices means the strike price of the call option is the same as the current stock price. This...
Introduction:
Executing a covered call strategy involves selling call options on a stock you own. It's a popular method to generate income on an existing...