What is Covered call and Iron condor Strategy?

Page 1

Finance is a world of investments. Your assets and liabilities contributed to the profitability under conditions of risk and uncertainty. Finance is a field that studies money management. The investor price assets considering various factors such as the risk level, the fundamental value of the asset and the expected rate of return. Areas of finance typically include Personal finance, Corporate finance, Public finance, Experimental finance, Behavioral finance and so on. Strategies are incorporated to define a company's business objective by identifying the available resources, planning for financial resources and other capital resources. Options Profits Daily is an organization that provides ideas and investment options that simply serves as a starting point for actual buy and sell decisions for your portfolio. Options Profits Daily is a place where you can study the current stock market, different strategies adopted by the market leaders and the various factors that contribute to profitability and potential risks. One such financial strategy explained by Options Profits Daily is the​ ​Covered Call​ ​Strategy. In this approach, a minor increase or decrease is expected at the available stock price for life which is a neutral strategy that allows earning income through the premium received for writing the option. A Covered call Strategy is a good option for those investors who intend to produce income while maintaining flexibility in capital gains along with providing a protection against stock depreciation. While writing the Covered call, the current stockholder sells the right to purchase his stock at a specific price within a stipulated period. The market participants adopt the Covered call Strategy to increase their investment income, lower portfolio risk and improve investment returns. In this scenario, the buyer as a stock or future contract owner owns your security on or before the expiration date. The buyer gets the legal right to buy shares without purchasing it on the open market at unfavorable pricing, thus it involves both stock and an option contract. In a covered call strategy, the call that is sold, is Out of the money (OTM). In areas, where the stock price is going to drop, you can sell an in the money call option (ITM) while maintaining your current stock position. This Strategy is typically adopted by investors and long-term traders where the main goal is to collect income via option premiums. Another Strategy brought to light by Options Profits Daily is the Strategy adopted by market players is the ​Iron Condor​ Strategy which is designed to have a large probability of earning the minimum profit when securities have low volatility. It is a limited risk, non directional option strategy where the trader creates an Iron Condor depending on the volatility of underlying stock during earnings season since the earning season generates trading opportunities.


This is an advanced strategy which is typically adopted by professional money managers and individual investors who desire consistent returns by executing it correctly. So, all the potential investors and the current market players, subscribe now to Options Profits Daily and get the newsletter delivered to your inbox each morning from the best advisers studying the current marketplace and yes, it's absolutely free!

To know more visit us: credit spread options​ ,​option trading ideas​,​how to trade options​,​Low Risk Bitcoin​,​low cost High Probability Trading​,​long term options trading​,​best Way to Trade Oil​,​dead cat bounce pattern​ ,​investment biker​,​best tech stocks to buy now​,​Oil Volatility


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.