Gordon Scott has been an active investor and technical analyst for 20+ years. He is a Chartered Market Technician (CMT). Vikki Velasquez is a researcher and writer who has managed, coordinated, and ...

Covered calls generate premium income from stocks you already own. Learn how the strategy works (with a step-by-step example) and understand the risks and downsides before you start. What is a covered ...

Explore the risks of buying versus selling options. Learn how to mitigate risks while understanding the potential advantages and drawbacks of each approach.

A collar options strategy protects stock holdings from significant losses while limiting potential gains. Investors create a collar by owning shares of a stock. They then purchase a put option below ...

WEEL employs a systematic option wheel strategy, selling cash-secured puts and, on assignment, covered calls to harvest option premium as its primary income source. The strategy's risk-reward profile ...

Approximately $200 billion now sits in the Morningstar Derivative Income category. The largest funds in it are covered call strategies. They write calls, not puts. Meaning half of a very powerful ...