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Covered Calls Aren’t For Beginners

January 28th, 2009

Covered calls are not exactly something that would fit into the stock market for beginners category.  But they are definitely something to keep in mind as you become more proficient at investing.  A covered call is simply selling an option to buy your shares of stock at a predetermined price.  If the buy opts out, then you get to keep the down payment!  Many people make a fortune selling covered calls alone.  So even if you are still learning how to invest wisely, keep covered calls in mind for a year or two down the road.  You’re pocket book will thank you.

Entry Filed under: Business