Last update: August 2021
≈ Tonight at 8:30 PM EST ≈
The Covered Call strategy is an old friend of Tackle Trading. We’ve been extensively teaching, showing, trading and talking about this clever strategy since the dawn of the company.
And we will continue doing so until the demise of Humanity.
This strategy is so cool that we can talk about it every single day and still come up with new ideas, which is mind-boggling. Think about it:
+100 shares – 1 call = Covered Call
(ding! ding! money comes in)
As simple as it gets, that is the basic formula. From that, an infinitude of topics emerge.
When I was a struggling trader, still in diapers, I used to attend the Cash Flow Club shows looking for further explanations about the strategy. There was specifically one topic that took me a while to wrap my head around: the BEP, or, the Break-Even Point.
— “Selling calls will lower your break-even point”.
— “Attention when selling calls that have a strike price below your break-even point.”
One day, it finally clicked and, eventually, the Covered Call became one of my core strategies. That is why is so important to attend shows like the Cash Flow Club and practice on a paper account at the same time.
We are holding a special show tonight to talk about Module 1 of the Tackle 25 Covered Call System at 8:30 PM EST. These are the topics that will be covered:
- Covered Call philosophy;
- How to generate cash flow with Covered Calls;
- Pre-requisites to good Covered Call trading;
- Trade management basics;
- Break-Even Cost (YAY!!)
Don’t miss it.
Not a PRO Member? There is no excuse not to attend it. Sign up here for a 15-day free trial and learn to cash flow like a PRO.
Chart of the Day: Not too much, not so fast
A short call is a bearish strategy. When you trade the Covered Call you want the stock price to rise so you can make money, but not too much, and certainly not so fast. You want it to stay below your short call strike until expiration.
Learn the basics of this strategy at the Cash Flow Club tonight at 8:30 PM EST. Access it here (PRO Members only).
Video of the day: How to Prepare Covered Calls (with Theta Research Spreadsheet)
Tim, Cody and Noah work through the Tackle Trading Theta research spreadsheet for building out Covered Calls.
Tackle Trading Resources on Covered Calls
Continue learning about this powerful options trading strategy: the Covered Call. Tackle Trading has all the resources you need to MASTER this strategy like a PRO.
Covered Call For Beginners [Free Articles]
In this video tutorial, Coach T walks the team through how to set a basic stop on a covered call or naked put position.
In this video tutorial, Coach T from Tackle Trading walks through a research session for covered calls.
In this video tutorial, Coach Matt goes through the latest edition of the Options Research Spreadsheet explaining how to use it to find the best stocks to cash flow.
In this video, Tackle Trading’s Coach Tim explains when, how, and why a trader would buy a put option on a covered call position.
The Tackle 25 2016 Edition is up and better than ever. This list contains the best stocks to cash flow and compound your gains.
I seem to have struck a nerve with my call for a reverse split in USO. And that’s a good thing.
Watch and learn as Coach D demonstrates how to roll a covered call down and out to offset risk and bring in more premium as he repairs a protective call write that has traded below the strike price and break-even price point.
Just when I think I’ve exhausted my inventory of covered call insights I stumble upon yet another blog worthy concept. Today I’ll shine a light on how to identify the remaining profit in your trade, an essential skill for covered call management.
With the advent of weeklys options the choices facing option traders has multiplied ten-fold. But it shouldn’t be overwhelming.
Listen up you covered call lovers. Today I’m tackling some common questions on how to get the most out of your beloved buy-writes.
In this video tutorial, Coach Tim Justice teaches how to find the best candidates to trade the Covered Call options strategy using the Theta Research tool.
How to leverage an IRA account by selling covered calls on long-term call options (aka LEAPS) instead of stock? Read on.
The Tackle 25 2017 Edition is up and better than ever. This list contains the best stocks to cash flow and compound your gains.
I think I could write about covered calls and naked puts every single week and still have plenty to say at the end of the year.
I received an email the other day from a trader that bought a few stocks and has been selling covered calls against them. He had questions. I have answers. Here we go.
Nothing like a monster “V” shaped reversal to get the juices flowing, am I right? Count me among those suffering whiplash over the market’s death-defying whoops and whirls of late. Yesterday was particularly annoying for those short delta toting traders like me.
Last update: August 2021 ≈ Cash Flow and Growth ≈ I put a poll question in the clubhouse recently asking the Tackle Trading community a simple question: Do you trade Covered Calls? If you haven’t answered the question yet, you still can HERE. Of the 5 potential answers, the breakdown was interesting. 38% said YES
Traders have all sorts of rules and guidelines for managing covered calls that move in-the-money.
Let’s talk about proper strike price selection for covered calls and protective puts.
Portfolio Protection For Beginners [Free Articles]
Everyone invests. Everyone has money. Currency is a form of investment since the gold standard was removed from the currency system.
You’re a goose chaser. Admit it. It’s the gold you seek. And that’s okay. You’re in good company. Most of us round these parts have been searching for the big bird for ages. Some have even tagged one.
Come lear a Trick for Financing Portfolio Protection.
What is hedging? Come learn the basics in this 3-part series.
In part one of our new series on hedging, we defined precisely what the concept means. Today we’re turning to the why.
With a sound foundation on the what and why of hedging, we’re now ready to dissect the devil. Namely, when do I place my hedge?
The way that you go about hedging varies depending on what your strategy is. Come learn how to hedge a naughty naked put.
Today I want to talk a bit about the impact VIX spikes have on the cost of portfolio protection.
It’s nailing the management of Protective Puts that separates the men from the boys. Allow me to offer up a few ideas.
The bears are roaming. And while their sudden emergence likely spelled losses for traders far and wide, the pain doesn’t have to persist. I look at this as a “fool me once, shame on you; fool me twice, shame on me” situation.
Contrarians in a bear market seek signs of capitulation. Specifically, evidence that bulls are throwing in the towel and abandoning their once beloved positions.
Herein we explore the perks of lengthening your time horizon and embracing Long-term Investing.
Good traders keep excellent records. Quality trading journals are essential to your progress and growth as a trader and keeping good records will help you learn more from both your income and expense trades.
Learn more about HOW the Tackle Trading Journals can help you become a professional trader.
Reports [Premium Content]
The Weekly Premium Reports are a part of the PRO subscription.
Tackle Trading Playbook [FREE for PRO Members]
PRO Members now have unfettered access to the Tackle Coaches’ personal playbook containing thirty-one powerful trading strategies categorized according to the Options Greeks. Bullish, bearish, or neutral market conditions, this Playbook will help you dial up the right call more often and with greater confidence.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
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