Tackle Today: Meet the Covered Call | Tackle Trading
≈ Tonight at 8:30 PM EST ≈
The Covered Call strategy is an old friend of Tackle Trading. We’ve been extensively teaching, showing, trading and talking about this clever strategy since the dawn of the company.
And we will continue doing so until the demise of Humanity.
This strategy is so cool that we can talk about it every single day and still come up with new ideas, which is mind-boggling. Think about it:
+100 shares — 1 call = Covered Call
(ding! ding! money comes in)
As simple as it gets, that is the basic formula. From that, an infinitude of topics emerge.
When I was a struggling trader, still in diapers, I used to attend the Cash Flow Club shows looking for further explanations about the strategy. There was specifically one topic that took me a while to wrap my head around: the BEP, or, the Break-Even Point.
— “Selling calls will lower your break-even point”.
— “Attention when selling calls that have a strike price below your break-even point.”
One day, it finally clicked and, eventually, the Covered Call became one of my core strategies. That is why is so important to attend shows like the Cash Flow Club and practice on a paper account at the same time.
We are holding a special show tonight to talk about Module 1 of the Tackle 25 Covered Call System at 8:30 PM EST. These are the topics that will be covered:
- Covered Call philosophy;
- How to generate cash flow with Covered Calls;
- Pre-requisites to good Covered Call trading;
- Trade management basics;
and… - Break-Even Cost (YAY!!)
Don’t miss it.
Not a PRO Member? There is no excuse not to attend it. Sign up here for a 15-day free trial and learn to cash flow like a PRO.
Chart of the Day: Not too much, not so fast
A short call is a bearish strategy. When you trade the Covered Call you want the stock price to rise so you can make money, but not too much, and certainly not so fast. You want it to stay below your short call strike until expiration.
Learn the basics of this strategy on the Cash Flow Club tonight at 8:30 PM EST. Access it here.
Video of the day: How to Prepare Covered Calls (with Theta Research Spreadsheet)
Tim, Cody and Noah work through the Tackle Trading Theta research spreadsheet for building out Covered Calls.
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Originally published at https://tackletrading.com on July 25, 2019.
