New Insights On Covered Call Writing

Bridging the gap between the high risk of the stock market, and the lower returns of fixed-yield investments, two options experts offer a technique for decreasing investment risk and increasing rewards using a method that combines stocks with call options by "writing" a call against a stock already owned by the investor. The method can be used by any stockowner and does not require large minimums, margin accounts, or advanced theoretical analysis. Lehman and McMillan outline benefits and caveats of the investment strategy that has, to date, been used by only a devoted few. Annotation (c)2003 Book News, Inc., Portland, OR (booknews.com).

Writing covered call options is an investment strategy that bridges the gap between equity and fixed-income investments. It offers much of the upside potential of equities but with less volatility. Thus, you can achieve long-term returns commensurate with stock market returns but with lower volatility and less downside risk. The trick is to combine stocks with writing call options against a stock you already own. Professional investment managers have been using this strategy for years. Now, U.S. options experts Richard Lehman and Lawrence McMillan unlock for you the secrets of writing covered call options in this groundbreaking, easy-to-understand guide. The book comprehensively covers everything you need to know, from the mechanics of implementation to option strategies that are best suited to your investment goals, complete with caveats that investors must understand before writing covered call options. Covered call writing can be used by any stock owner and does not require huge minimums, margin accounts, or advanced theoretical analysis. New Insights on Writing Covered Call Options shows how to use this powerful and accessible investment technique, giving you the edge to enhance your returns and lower your risk.

Does this sound like you? You want the long-term returns from stocks but don't like the volatility. You like the security of income from bonds and CDs, but the yields are too low. You wish there was a sensible discipline you could follow that would provide the attractive returns offered by common stock yet with more consistency and less risk. If so, then covered call writing may be the investment strategy you’ve been looking for. You can achieve long-term returns commensurate with stock market returns but with lower volatility and less downside risk. The trick is to combine stocks with call options by "writing" a call against a stock you already own. Professional investment managers have been using this strategy for years, and recent developments have now made it easier for individual investors to employ it as well. Options experts Richard Lehman and Lawrence McMillan unlock the secrets of covered call writing in this groundbreaking, easy-to-understand guide.

Basics of covered call exit strategies -- definitions -- Why use exit strategies -- Mathematics of the 1-month contract period -- Key parameters to consider before expiration Friday -- Key parameters to consider on or near expiration Friday -- Exit strategy alternatives prior to expiration Friday -- Exit strategy alternatives on or near expiration Friday -- Preparing your portfolio manager watch list -- Executing the exit strategy trades -- Real life examples prior to expiration Friday -- Real life examples on or near expiration Friday -- Using multiple exit strategies in the same contract period -- Ellman system options calculator -- Concluding remarks and personal observations -- Appendix.

Practical option strategies for the new post-crisis financial market Traditional buy-and-hold investing has been seriously challenged in the wake of the recent financial crisis. With economic and market uncertainty at a very high level, options are still the most effective tool available for managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In Options for Volatile Markets, Richard Lehman and Lawrence McMillan provide you with specific strategies to lower portfolio volatility, bulletproof your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with. While the core strategy of this new edition remains covered call writing, the authors expand into more comprehensive option strategies that offer deeper downside protection or even allow investors to capitalize on market or individual stock volatility. In addition, they discuss new offerings like weekly expirations and options on ETFs. For investors who are looking to capitalize on global investment opportunities but are fearful of lurking "black swans", this book shows how ETFs and options can be utilized to construct portfolios that are continuously protected against unforeseen calamities. A complete guide to the increased control and lowered risk covered call writing offers active investors and traders Addresses the changing investment environment and how to use options to succeed within it Explains how to use options with exchange-traded funds Understanding options is now more important than ever, and with Options for Volatile Markets as your guide, you'll quickly learn how to use them to protect your portfolio as well as improve its overall performance.

Since Burton Malkiel’s seminal work A Random Walk Down Wall Street was published, the financial world has swallowed whole the idea that market movement is chaotic and random. In Far from Random, Richard Lehman uses behavior-based trend analysis to debunk Malkiel’s random walk theory. Lehman demonstrates that the market has discernible trends that are foreseeable. By learning to spot these trends, investors and traders can predict market movement to boost returns in anything from equities to 401(k) accounts. Richard Lehman has been a financial professional for more than thirty years. He studied the first iterations of behavioral finance back in the 1970s as a financial marketer and has since worked in various facets of the financial industry. His early introduction to behavioral finance and the more recent introduction to trend analysis led him to this important discovery.

This straightforward, accessible guide clearly explains what options are and how they work, their pros and cons, their relationship with stocks, and how to use them to gain leverage, generate extra income, and protect against adverse price movements.

There are many reasons to invest, and the two foremost are to stay above the eroding entity of inflation and to achieve financial goals. In Market Muscle, author and licensed financial advisor Thomas Peterson reveals Wall Streets hidden secrethow to make money safely and lucratively using the covered call option with exchanged traded funds and protective puts. Market Muscle discusses increased cash flow, double digit returns, capital appreciation, dividends, and downside protection. Peterson presents a basic overview on options, exchange traded funds, protective puts, and the information necessary to become a covered call master. Through step-by-step guidance, illustrative stories, and end-of-chapter quizzes, Market Muscle presents the how and why strategies behind using the covered call. It shows how investors can beat the market, enhance return, experience capital gain opportunities, earn generous weekly or monthly income, gain instant diversification, and control risk using this little-known but powerful investment vehicle.