Explain Option Trading is Easy

In recent years, there are many Options Guru who conducted option seminars in my country. The price of the seminars is very expensive and only focus on writing covered call strategy but the seminars are always fully booked, why ?

• they offer a quick fortune or how to get rich quickly through Option Trading
• economic crisis, so many people need to recover their financial situation immediately
• basic human needs, money and wealth
• Option Trading is a new Invest Tool in my country

So Option Gurus are successful because they came at the right time and place. But too bad, their successes are not long lasting. Why ? because they are only good in Explaining Option Trading, What are Stock Option. They are failed to prove their promises to get quick fortunes through option trading. Then What Happened ? many of their students decided to become option gurus or option seminar speakers because they knew that explain option trading is much easier than trade option for themselves.

Online Options Trading : http://onlineoptionstrading.blogspot.com/

Writing Covered Call in Online Options Trading

Covered call is a combination of stocks and options.

The steps of writing covered call in online options trading :

1. buy a stock
2. sell a call option

The characteristic of writing covered call in online options trading:

• return : limited
• risk : unlimited

Calculation of writing covered call in online options trading

1. return = ( strike price of option sold - the purchased price of the stock ) + premium received
2. loss = unlimited until the stock price falls to zero
3. break even = the purchased price of the stock - premium of the call options

When to use covered call in online options trading?

when you own a stock and believe that the stock 's price will remain relatively unchanged for the short term but is bullish in the long run.

Option Trading Strategy : http://optiontradingstrategy.blogspot.com/

Writing Covered Call

Writing covered call strategy is one of the best options strategies. Every options trader usually start the trading by using writing covered call strategy because this options strategy is simple to do it. Online Options Trading http://onlineoptionstrading.blogspot.com/