Futures, Options and Forex Educational Center for Beginning Traders

Have you bought options in the past only to watch their value slip to zero and finally expire worthless? Wouldn't you rather be a seller of options and earn that premium? With covered-call writing, you can. It is an investment strategy that is both profitable if market prices rally, yet still produces income even if prices languish or fall.

This video will describe the covered-call write strategy and explain when to use it. Using actual charts and prices, you'll see how a covered-call write is constructed and how to calculate the risk, break-even and profit potential of this appealing investment strategy.

Specifically, you'll learn:

  • How to construct a covered-write strategy.
  • When and why to use it and in what markets.
  • In-depth example using the E-mini S&P 500.
  • Comparison of covered-write with traditional 'buy and hold' strategy.
  • How to pick the strike price of the call option sold.
  • Tips on timing, execution and management of covered-write.

This video is presented by Rick Thachuk, President of World Link Futures, Inc. and made free of charge thanks to the sponsorship of Alaron's Futures Training Division. To access this free online video, please complete the information below.

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© 2008. World Link Futures, Inc. All rights reserved.
Futures, options and forex trading involves substantial risk and is not for everyone. Only risk capital should be used.