Options Trading Strategy – Covered Call Writing – Part 4

Published on November 26, 2018

Options Trading Strategies – Covered Call Writing – Part 4

This is the Part 4 of Options Trading Strategy video series. In this particular part, I have explained in detail about Covered Call writing strategy. In the first three parts I have covered about Option trading basics in great depth. If you want to learn about call option, put options, option greeks (delta, theta), option selling, do refer to part 1, part 2 and part 3. Links to same are given below.

In this part, I have started with the very basics of Covered Call strategy and explained how one can execute selling covered calls in order to generate consistent income and use this strategy to bottom fish in stock market. While using covered call strategy to generate income, I have recommended using existing low beta stock in one’s portfolio to generate consistent return as the stock moves into a down cycle.

While using covered call strategy to bottom fish in the stock market, I have listed out specific steps one has to follow in order to attempt buying as price falls. This part forms most of the theoretical aspects of covered call writing strategy and in the next part I will be taking up real life Option trading pricing example and option greeks to show how this strategy can be used to generate consistent income on a long term holding and how it can be used to anticipate bottom in the market by controlling overall risk.

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