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Has anyone tried covered call options on the stock market ?

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Has anyone tried covered call options on the stock market ?

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Hi Ronni, Covered calls can be a good way to make profits in the stock market. Like anything in the stock market, there are risks associated with the potential rewards. The principle advantage of the technique is that it brings immediate cash into your account when you sell the call, providing you with an immediate positive return and lowering the basis of your stock investment. Over time, a covered-call program can bring in a considerable sum to your account. The main disadvantage is that the technique does not work well in a sharply declining market, (but neither does simple stock ownership without covered calls!). In order to be successful with covered calls you need to educate yourself about them, enter into conservative trades, and potentially take action should the position go against you. In other words, you need education and a plan. Fortunately there are some free, useful sources of information to assist you. Try www.safe-options-trading-income.com and www.optionseducation.org

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