{"product_id":"new-insights-on-covered-call-writing-isbn-9781576601334","title":"New Insights on Covered Call Writing","description":"Does this sound like you?  \u003cul type=\"disc\"\u003e \u003cli\u003eYou want the long-term returns from stocks but don't like the volatility.\u003c\/li\u003e \u003cli\u003eYou like the security of income from bonds and CDs, but the yields are too low.\u003c\/li\u003e \u003cli\u003eYou wish there was a sensible discipline you could follow that would provide the attractive returns offered by common stock yet with more consistency and less risk.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIf so, then covered call writing may be the investment strategy you’ve been looking for.\u003c\/p\u003e \u003cp\u003eYou \u003ci\u003ecan\u003c\/i\u003e achieve long-term returns commensurate with stock market returns but with lower volatility and less downside risk. The trick is to combine stocks with call options by \"writing\" a call against a stock you already own. Professional investment managers have been using this strategy for years, and recent developments have now made it easier for individual investors to employ it as well. Options experts Richard Lehman and Lawrence McMillan unlock the secrets of covered call writing in this groundbreaking, easy-to-understand guide.\u003c\/p\u003e  Preface.  \u003cp\u003eIntroduction.\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I: BUILDING THE FOUNDATION.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1: Option Basics.\u003c\/b\u003e\u003cbr\u003e What Are Options?\u003cbr\u003e How Options Compare with Stock.\u003cbr\u003e Standardization.\u003cbr\u003e Listed versus Unlisted.\u003cbr\u003e Option Listings.\u003cbr\u003e Strike Price.\u003cbr\u003e Expiration.\u003cbr\u003e Players and Positions.\u003cbr\u003e Exercise and Assignment.\u003cbr\u003e The Basic Mechanics.\u003cbr\u003e What Happens at Expiration.\u003cbr\u003e Covered versus Naked.\u003cbr\u003e Options in Your Account.\u003cbr\u003e Recapping Option Basics.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2: Just Beyond the Basics.\u003c\/b\u003e\u003cbr\u003e Valuing Options.\u003cbr\u003e Fair, or Theoretical, Value.\u003cbr\u003e Volatility.\u003cbr\u003e Interest Rates.\u003cbr\u003e Dividends.\u003cbr\u003e Theory versus Reality.\u003cbr\u003e Trading Symbols.\u003cbr\u003e Adjustments.\u003cbr\u003e Expiration Months.\u003cbr\u003e How Options Are Traded.\u003cbr\u003e The Exchanges.\u003cbr\u003e Computerized Quotes.\u003cbr\u003e Liquidity.\u003cbr\u003e Recapping Just Beyond the Basics.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3: Covered Writing Mechanics.\u003c\/b\u003e\u003cbr\u003e Requirements for \"Valid\" Covered Writes.\u003cbr\u003e Risk\/Reward of a Covered Write.\u003cbr\u003e Risk\/Reward Characteristics Over Time.\u003cbr\u003e Risk Transference.\u003cbr\u003e Shorting a Call versus Shorting a Stock.\u003cbr\u003e More on Exercise and Assignment.\u003cbr\u003e Calculating Potential Returns.\u003cbr\u003e Return if Exercised (RIE).\u003cbr\u003e Return Unchanged.\u003cbr\u003e Return Based on Net Debit.\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II: EXECUTING THE STRATEGY.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4: Turning a Position into a Strategy.\u003c\/b\u003e\u003cbr\u003e A New Way of Thinking.\u003cbr\u003e Follow-up Actions.\u003cbr\u003e The Simple Case: Doing Nothing until Expiration.\u003cbr\u003e Closing Part or All of the Position.\u003cbr\u003e Rolling Options.\u003cbr\u003e Rolling Up.\u003cbr\u003e Rolling Up and Out.\u003cbr\u003e Rolling Down.\u003cbr\u003e Rolling Out.\u003cbr\u003e Other Considerations.\u003cbr\u003e Covered Call Strategies.\u003cbr\u003e The Total Return, or \"Buy-Write,\" Approach.\u003cbr\u003e The Incremental Approach.\u003cbr\u003e Hedging Individual Stocks.\u003cbr\u003e Reducing Risk in Small Portfolios.\u003cbr\u003e Writing Calls on \"Hot\" Stocks.\u003cbr\u003e Tax Deferral Strategies.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5: The Benefits of Covered Writing.\u003c\/b\u003e\u003cbr\u003e The Rationale Behind Covered Writing.\u003cbr\u003e Realistic Expectations.\u003cbr\u003e Call Writing and Stock Returns.\u003cbr\u003e Major Factors Affecting Call Writing Returns.\u003cbr\u003e Stock Selection.\u003cbr\u003e Strike Price.\u003cbr\u003e Expiration.\u003cbr\u003e Volatility.\u003cbr\u003e Interest Rates.\u003cbr\u003e Transaction Costs.\u003cbr\u003e Covered Writes Compared with Stocks Over Time.\u003cbr\u003e The BuyWrite Index (BXM).\u003cbr\u003e Real-World Results for Twenty Stocks.\u003cbr\u003e Results by Calendar Year.\u003cbr\u003e Effects of Writing a Higher Strike Price.\u003cbr\u003e Recapping Benefits.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6: Intangible Benefits.\u003c\/b\u003e\u003cbr\u003e What is Long Term, Anyway?\u003cbr\u003e The Covered-Write Solution.\u003cbr\u003e The Benefits in Detail.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7: Implementation.\u003c\/b\u003e\u003cbr\u003e Deciding on Your Approach.\u003cbr\u003e Incremental Writing.\u003cbr\u003e Traps Involved in Writing for Incremental Return.\u003cbr\u003e The Total-Return Approach.\u003cbr\u003e Traps in the Total-Return Approach.\u003cbr\u003e Are You a Fundamentalist or a Technician?\u003cbr\u003e Selecting Stock Positions.\u003cbr\u003e Searching All Stocks.\u003cbr\u003e Searching Specifically for Covered Writes.\u003cbr\u003e Selecting Calls to Write.\u003cbr\u003e Which Strike Price?\u003cbr\u003e Which Expiration Month?\u003cbr\u003e Getting Your Ducks in a Row with Your Brokerage.\u003cbr\u003e Full-Service versus Discount Brokers.\u003cbr\u003e Online Brokers.\u003cbr\u003e Financial Planners.\u003cbr\u003e Which Account to Use?\u003cbr\u003e Writing Calls on Your Employer's Stock.\u003cbr\u003e Keeping Records.\u003cbr\u003e Placing Orders.\u003cbr\u003e Market and Limit Orders.\u003cbr\u003e Stop Orders.\u003cbr\u003e Buy-Write Orders.\u003cbr\u003e Using Spread Orders When Rolling.\u003cbr\u003e Risks.\u003cbr\u003e Basic Tax Rules for Options.\u003cbr\u003e Precepts for Covered Call Writers.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8: Advanced Implementations.\u003c\/b\u003e\u003cbr\u003e Covered Writing on Margin.\u003cbr\u003e Margin Rules for Covered Writes.\u003cbr\u003e Advantages of a Margined Covered Write.\u003cbr\u003e Covered Writing against Securities Other than Stock.\u003cbr\u003e Covered Writing on \"Diamonds,\" \"Qs,\" and Other ETFs.\u003cbr\u003e Writing Calls against Convertible Securities.\u003cbr\u003e Writing Calls against Other Options—The \"Call-on-Call\" Covered Write.\u003cbr\u003e Covered Writing on LEAPS.\u003cbr\u003e Partial Writing, Mixed Writing, and Ratio Writing.\u003cbr\u003e Partial Writing.\u003cbr\u003e Mixed Writing.\u003cbr\u003e Ratio Writing.\u003cbr\u003e Put Writing.\u003cbr\u003e Advantages of Put Writing.\u003cbr\u003e Disadvantages of Put Writing.\u003cbr\u003e Implied Volatility and Overvaluations.\u003cbr\u003e Efficiency, Inefficiency, and Overvaluation.\u003cbr\u003e Expiration Games.\u003cbr\u003e Option-Stock Arbitrage.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9: Tools for Covered Writers.\u003c\/b\u003e\u003cbr\u003e Option Chains.\u003cbr\u003e Search Tools.\u003cbr\u003e Calculators.\u003cbr\u003e Probability Analysis.\u003cbr\u003e Industrial Strength Option Software.\u003cbr\u003e What Will This Cost You?\u003cbr\u003e Internet Resources for Covered Call Writers.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAfterword.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAppendix A: Timeline of Options Trading in the United States.\u003cbr\u003e Appendix B: Sample Covered Writing Spreadsheet for Tax Purposes.\u003cbr\u003e Appendix C: Tax Rules for \"Qualified\" Covered Call Options.\u003cbr\u003e Appendix D: Twenty-Stock Covered Call Study.\u003c\/p\u003e \u003cp\u003eBibliography.\u003c\/p\u003e \u003cp\u003eGlossary.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e  \u003cb\u003eRichard Lehman\u003c\/b\u003e has more than twenty-five years of experience applying his expertise in options strategies. He has held executive positions at E. F. Hutton, Thomson McKinnon Securities, First Saxonia Securities, and at the New York Stock Exchange. As an independent adviser, he now runs an online advisory service at CoveredWriter.com.  \u003cp\u003e\u003cb\u003eLawrence G. McMillan\u003c\/b\u003e is recognized as one of the foremost options trading experts. He has written three best-selling books on options, including Options as a Strategic Investment. As president of McMillan Analysis Corporation, he writes the \"Daily Volume Alerts\" and edits and publishes \u003ci\u003eThe Option Strategist\u003c\/i\u003e, a derivative products newsletter covering equity, index, and futures options, as well as the online resource OptionStrategist.com.\u003c\/p\u003e  \"This book \u003cb\u003emakes a great case\u003c\/b\u003e for basic reading and writing--reading stock charts and writing covered calls.\"\u003cbr\u003e —\u003cb\u003eJohn Murphy\u003c\/b\u003e\u003cbr\u003e President, MurphyMorris Money Management\u003cbr\u003e Chief Technical Analyst, StockCharts.com  \u003cp\u003e\"This was a definite eye-opener, and \u003cb\u003eone of the soundest approaches to stock investing I’ve seen.\u003c\/b\u003e It makes you wonder what else Wall Street has been keeping from us.\"\u003cbr\u003e —\u003cb\u003eBrian R. Workman\u003c\/b\u003e\u003cbr\u003e Senior Vice President, Citi Cards, Citigroup\u003c\/p\u003e \u003cp\u003e\"In a low-return, high-volatility environment, these strategies can boost returns and lower risk. \u003cb\u003eThere is no such thing as a free lunch, but in this case all the lunch costs is a little initiative.\u003c\/b\u003e\"\u003cbr\u003e —\u003cb\u003eStephen M. Savage\u003c\/b\u003e\u003cbr\u003e Managing Director, Litman\/Gregory Analytics\u003cbr\u003e \u003cbr\u003e \"This book \u003cb\u003ehas the most complete and comprehensive coverage of covered call investing that I have seen\u003c\/b\u003e. Most books discuss covered calls as just one of many option techniques. This book goes the extra mile. It discusses the theoretical aspects of covered calls and also provides the practical tools any investor would need to effectively implement a covered call trading strategy.\"\u003cbr\u003e —\u003cb\u003eErnie Zerenner\u003c\/b\u003e\u003cbr\u003e President, Power Financial Group, Inc.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989687025893,"sku":"NP9781576601334","price":45.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576601334.jpg?v=1761785106","url":"https:\/\/k12savings.com\/products\/new-insights-on-covered-call-writing-isbn-9781576601334","provider":"K12savings","version":"1.0","type":"link"}