"In episode 3 of Understanding Options Trading, Tony Zhang, Chief Strategist at OptionsPlay, provides an in-depth discussion on generating additional income through covered calls for investors, with stock or ETF portfolios targeted for long-term investments. Learn the fundamental mechanics of covered calls, including the selection of expiration dates and strike prices, aimed at maximizing income while maintaining portfolio risk at a conservative level. Get a clear understanding of the potential benefits and obligations involved throughough real-life examples and a detailed exploration of different scenarios. Gain insights into making informed decisions on covered calls, focusing on achieving a consistent income yield.
Chapters:
0:00 - Introduction
3:50 - What is a covered call?
12:08 - When to sell a covered call
15:40 - Covered calls cheat sheet
18:00 - An example: Covered calls vs. buy and hold
26:20 - Selecting the right covered call
47:05 - An example: Stock rallies
54:15 - Stock declines
57:38 - Trades sideways
Watch Understanding Options Trading ep. 4: What is Index Options Trading?: • What are Index Options...
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