What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

What's a Covered Call?

If you picked up Groupon (GRPN) shares at the start of September then you timed it perfectly.  Groupon shares have bounced back 28% this month and are no longer a stock under $5.

They are Deckers (DECK), Amkor Tech (AMKR), and Gaylord Entertainment (GET).

Taking a punch to the nose are shareholders of Groupon Inc (GRPN) which hit a new 52-week low of $5.71 today. Joining the pity parade are shares of Nokia (NOK) and Facebook (FB) which are falling on heavy volume.

This week Mastery found a few stocks worth your time including Xerox (XRX), The Volatility ETF 'VXX', Netflix (NFLX), Groupon (GRPN) and more.  Its the weekend so enjoy your favorite beverage and let's get into some fun and exciting stocks.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

What's a Covered Call?