An Advanced Strategy for Easy Stock Market Gains

Hello Nilus, Good video on covered call writing. There are a few other ideas associated with covered call writing that especially apply if you buy a stock just to write the covered call against it. First, you need to buy a stock that you are willing to own for an extended period, just in case the market and the stock fall significantly in value when you are holding the stock. You want to own a good stock that you are willing to hold until it recovers the original purchase price. Second, it is helpful if you write covered calls on securities that have a lot of option volume so that you can get in and out without a lot of leakage. Its also very profitable to buy your stock when the technicals indicate that it is oversold and wait to write the covered call when the stock becomes overbought. If you have the patience to do this, you can greatly increase the probability that you will be profitable.

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