WELCOME

WELCOME

As 2008 comes to a close today, another page is turned for another month and year. 2008 was not the best year for the financial health of America and the world in general to say the least.

The intent of this blog is to explain covered call options and show how covered call options can be a way to increase the yield and cash flow of owning a qualified stock and also reducing some of the Risk involved with stock ownership.

After explaining and showing examples of the covered call strategies, I will also describe selling puts. Put selling requires a margin account from your brokerage or online brokerage account. All option accounts have to be approved by the firm where you have your stock brokerage account. It is also advisable to become familiar with some of the materials and tutorials found at the Chicago Board Options Exchange. Their website is cboe.com .

Covered call options are accepted for both regular stock brokerage accounts and IRA accounts.

To me, it seems in the minds of many people, that all options are very risky and complicated. In reality, options can be used for either speculation or reducing (hedging) risk . This blog will concentrate on the option strategies that can reduce risk.

Happy New Year.