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for: ‘May, 2009’

Buying Call Options

Buying call options is the opposite of selling covered calls and is an extremely aggressive strategy.  You can generate big losses, but if you’re right, huge (and I mean huge) gains.  The only reason we are willing to do it with a very small percentage of our assets is because we have the liquidity, net …

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Selling Covered Calls

The volatility in the markets has caused pricing for certain derivatives to shoot through the roof, allowing investors to earn huge returns by selling covered calls (also known as writing covered calls).  Here’s an example of a real transaction involving selling covered calls that one of our businesses recently contemplated. Right now, we could purchase …

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