By Mike Parnos of Online Trading*
Many covered-call traders are simply selling call options on stock they already own in an attempt to generate a better return on their investment. Others, however, will go out and buy stock specifically for the purpose of selling calls against it.
By Vincent Troncone*
Posted: April 18, 2008
Today, I am going to discuss a controversial area of trading. In my opinion, this controversy is caused by a lack of knowledge. Lack of knowledge often generates fear for those who do not understand the possibilities.
I will also present a market forecasting technique I have found to work quite well in any time frame and market I have traded.
For simplicity’s sake, I will only present this method using 2 daily charts. The first will be from a bullish perspective and the second from the bearish point of view.
