I recently wrote a post about the benefits of using a covered call, but there is also a downside to using covered calls. While a covered call provides some protection to a long stock position, and serves to smooth price swings, it is far from a hedge for the long position. It should by no […]
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Purchasing stock to hold for the long term can be harrowing. In October the market swooned, only to recover all it’s losses. The drop could have easily taken an investor out of a position. Using a covered call, with the five benefits we discuss here, could keep an investor in a position that would otherwise […]
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I’ve traded BAC / BACWSA often since the warrants began trading. Sometimes I’m long warrants and short common, sometimes long warrants and short calls, and sometimes just long warrants. I’ve had an interest in the banks ever since I did a consulting gig at the FDIC helping them learn how to wind down large financial […]
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