A strategy in options trading whereby call options are written against a holding of the underlying security, is a covered call. The investor using a covered call gets to earn a premium writing calls while at the same time appreciate all benefits of underlying stock ownership, such as dividends and voting rights, unless he is assigned an exercise notice on the written call and … [Read more...]
Covered Call- Option Trading
A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This … [Read more...]
terms of stock trading
COMPOUND GROWTH RATE compound growth rate is an important indicator of a company’s long-term prospects. it is the year-over-year growth rate of an investment over a specified period of time. A company’s growth rate of profits is compounded over a number of years, at least five, to see how it has growth and what is likely to lie for it in the future. The compound annual … [Read more...]