Covered Call

Rolling: The Art and Science of Extending a Trade's Duration January 11, 2023 11:03 AM   |  

Explore rolling options “losers” to extend duration for covered calls, naked calls or puts, one side of a short strangle, and select other trades.

3 min read  |  Advanced Options Strategies
Trying to Become a Full-Time Trader? December 15, 2022 10:58 AM   |  

Are you considering becoming a full-time trader? Here are a few things you should know before switching your career path.

5 min read  |  thinkMoney Magazine
A Brief History of Stock Market Bubbles & How Investors Can Prepare August 23, 2022 10:49 AM   |  

There have been a few occasional stock market bubbles since the beginning of markets. Here’s a look at a few of them, and what today’s investors can learn from these popped stock market bubbles.

7 min read  |  Portfolio Strategy
How to Trade Options: Making Your First Options Trade May 17, 2022 1:15 PM   |  

Have you ever thought about how to trade options? Consider exploring a covered call options trade. In this article, you'll how to make your first options trade.

5 min read  |  Options Trading Basics
Want To Be Your Own Driving Force? Active Trading in an IRA January 31, 2022 11:30 AM   |  

Trading in an IRA may be a way for some people to try to manage risk and potentially increase their income stream in retirement while having some tax-deferred benefits.

3 min read  |  IRA & 401k Plans
Looking to Earn Income from the Stocks You Own? Consider Fully Paid Lending November 18, 2021 4:15 AM   |  

Through the new Fully Paid Lending Income Program, qualified applicants can earn income on stocks and exchange-traded funds by lending out the shares they already own.

4 min read  |  Stocks & Stock Sectors
Ask the Coach: What Are the Odds? September 27, 2021 10:15 AM   |  

When trading options, it can be helpful to assess the probabilities before making a decision to enter a trade.

5 min read  |  thinkMoney Magazine
Options Refresher: Basics of Call and Put Strategies July 1, 2021 10:15 AM   |  

Considering options trading? Start with the basics of puts and calls and how to create single-leg strategies with call and put options.

5 min read  |  Options Trading Basics
Need a Replacement Strategy? Buying Stock vs. Buying Call Options April 16, 2021 10:15 AM   |  

Can you use call options as a substitute for long stock? If you’re a qualified account owner, yes. Learn about buying stocks versus buying calls with the stock replacement strategy.

3 min read  |  Options Trading Basics
Want to Speak the Language of Option Traders? Here’s an Options Trading Terminology Guide March 16, 2021 10:30 AM   |  

Return on capital and liquidity mean specific things in finance. But they can mean something different to an option trader. Read this options trading terminology guide to find out.

7 min read  |  Options Trading Basics
The Short and Long of It: Your Top Questions on Short-Selling Answered February 8, 2021 2:01 PM   |  

Short selling, short interest, naked short selling are among terms some investors had scarcely paid attention to. But a flurry of apparent short squeezes in 2021 called attention to shorting. Here are some of the top questions answered.

6 min read  |  Margin
Small Trades: Formula for a Bite-Size Trading Strategy February 2, 2021 10:01 AM   |  

Consider these six strategies for bite-sized trading

7 min read  |  Options Trading Basics
Covered & Non-Covered Basis? Options Trading Tax Info? Your 1099-B Questions Answered January 6, 2021 10:15 AM   |  

Learn about the 1099-B, how taxation on options trading works, and how TD Ameritrade clients can use GainsKeeper to help determine cost basis.

4 min read  |  Tax Forms
Options Building Blocks: Why Should Investors Consider Covered Calls and Cash-Secured Puts? November 23, 2020 10:30 AM   |  

Selling covered calls and cash-secured puts can help investors generate additional income, increase their probability of success, decrease their volatility of returns, and lower their overall risk when compared to buying stock.

5 min read  |  Options Trading Basics
Options Rolls: Tools to Adjust Your Trading Strategy October 1, 2020 10:30 AM   |  

If an options position isn’t going the way you thought it would, you might consider rolling it using the thinkorswim Strategy Roller®. It could take out some of the guesswork for when and how to roll options positions.

4 min read  |  thinkorswim Platform
When Calendar Met Vertical: A Diagonal Spread Tale September 2, 2020 11:52 AM   |  

Compared to covered calls and other basic options strategies, diagonal spreads don’t get a lot of love. But not only are they relatively straightforward, they’re also flexible and versatile. Here’s the story.

7 min read  |  Advanced Options Strategies
Surfing the Jobs Report: Why It Matters and Strategies for Trading It February 10, 2020 10:30 AM   |  

The monthly U.S. Employment Situation report—commonly called the jobs report—is perhaps the most closely watched fundamental indicator for traders and investors. Here’s why.

5 min read  |  Advanced Options Strategies
Trading Earnings Season? A Few Options Strategies to Consider October 1, 2019 10:15 AM   |  

Earnings season can be a time of higher-than-typical volatility, which can mean an increase in risk as well as opportunity. Learn some of the options trading strategies you might use during earnings season.

5 min read  |  Advanced Options Strategies
Volmageddon: How to Trade a Crash September 30, 2019 10:15 AM   |  

If the markets are crashing, do you close your positions or do you take advantage of opportunities? Whether you are a stock investor, volatility trader, or speculator, there may be a strategy worth pursuing.

3 min read  |  thinkMoney Magazine
Investment Clubs: The New Old-Fashioned Hangout September 5, 2019 10:15 AM   |  

One of the benefits of joining an investment club is it's a fun way to learn to buy and sell stocks.

2 min read  |  Stocks & Stock Sectors
Pairs Trading: The Third Dimension of Trading June 30, 2019 11:47 AM   |  

Pairs trading is a trading strategy that involves two stocks in the same sector. There are different ways to create a pairs trade, whether you are pairing two stocks, stocks and ETFs, stocks and options, or options and options.

5 min read  |  thinkMoney Magazine
Looking for a Potential Edge? Options Stats, Pre-Sliced and Diced on thinkorswim May 29, 2019 4:00 AM   |  

Explore options statistics on thinkorswim—implied & historical vol and percentiles, the Sizzle Index, and the put/call ratio. Learn how options stats can help traders and investors make more informed decisions.

5 min read  |  Options Trading Basics
Collar Options Strategy: Collaring Your Stock for a Temporary Measure of Protection May 23, 2019 3:00 PM   |  

Learn how a collar strategy—a covered call and a protective put—might be a way to manage stock risk.

4 min read  |  Advanced Options Strategies
When a Hedge Is Not Just a Hedge April 1, 2019 3:00 AM   |  

You may want to hedge some of your individual positions. Here are three volatility-based options strategies you could use if you have stock risk, sector risk, or global risk.

6 min read  |  thinkMoney Magazine
Options Strategy Basics: Looking Under the Hood of Covered Calls March 5, 2019 4:00 AM   |  

Learn how a covered call options strategy can attempt to sell stock at a target price; collect premium and potentially dividends; and limit tax liability.

8 min read  |  Options Trading Basics
Implied Volatility: Spotting High Vol and Aligning Your Options December 26, 2018 4:01 AM   |  

Learn the difference between implied and historical volatility, and find out how to align your options trading strategy with the right volatility exposure.

3 min read  |  Advanced Options Strategies
Wanna Trade Your Retirement Account? July 16, 2018 3:00 AM   |  

You may be able to trade options in an IRA. Learn more about IRA options trading in this article.

5 min read  |  thinkMoney Magazine
Derivatives With a Twist: Options on Futures vs. Equity Options December 6, 2017 11:00 PM   |  

Options on futures are quite similar to their equity option cousins, but a few differences do exist.

6 min read  |  Advanced Options Strategies
Term Structure and Covered Calls in a Low-Volatility Environment August 17, 2017 12:00 AM   |  

When stuck in a low-volatility environment, check out the term structure. You might consider alternative covered call strategies.

3 min read  |  Advanced Options Strategies
Look Before You… Get Assigned July 24, 2017 12:00 AM   |  

Know what you're getting into before putting on that option trade—avoid surprises by educating yourself about the risks and oddities of assignment.

7 min read  |  Advanced Options Strategies
Swim Lessons: Collaring Your Stock for a Measure of Protection June 29, 2017 12:00 AM   |  

Learn how a collar strategy—a covered call and a protective put—might be a cost-effective way to manage stock risk.

4 min read  |  Advanced Options Strategies
Synthetics: A Useful Accessory for Your Options Wardrobe April 27, 2017 12:00 AM   |  

Learn how synthetic option positions can be made by certain combinations of calls, puts and the underlying stock.

4 min read  |  Options Trading Basics
Are You Trading Enough? Manage Your Trades Better April 16, 2017 11:00 PM   |  

Overtrading can be a killer to your P/L. The trick is to trade consistently and always know what the markets—and your positions—are doing.

8 min read  |  Options Trading Basics
Income Options: Selling Covered Calls, Selecting Strategic Strikes August 24, 2016 12:00 AM   |  

Covered calls are one way to earn income from stocks you own. Learn more about how to sell covered calls and strategically select strike prices.

3 min read  |  Options Trading Basics
Fake It ’Til You Make It: Synthetic Options Strategies, Pt 3 May 12, 2016 12:01 AM   |  

With an understanding of terms and definitions involved in synthetic options, how do traders begin applying synthetic options in the most efficient way?

3 min read  |  Advanced Options Strategies
Not So Artificial: Understanding Synthetic Options Strategies April 22, 2016 12:01 AM   |  

Learn how synthetic options strategies can help traders potentially lower transaction costs, improve price discovery, and more efficiently use capital.

3 min read  |  Advanced Options Strategies
Popping the Cork With the Fed: Cool Ideas for Rising Rates April 12, 2016 12:00 AM   |  

What you should know about rising interest rates, and practical trading strategies for dealing with them—approaching Fed decisions in four different arenas.

7 min read  |  Fundamental Analysis
You Asked, We Answered: Getting Started with Options March 9, 2016 11:00 PM   |  

Industry data shows options trading numbers are growing. But many stock traders remain hungry for options trading basics. Here’s how to get started.

4 min read  |  Options Trading Basics
Tricks of Traders Fund Managers Only Dream Of December 31, 2015 11:00 PM   |  

A trader's job can be easier than an average mutual fund manager's—A few reasons the playing field for traders is more than leveled.

6 min read  |  Options Trading Basics
Options Tricks: Resuscitating Your Dead Mutual Funds December 31, 2015 11:00 PM   |  

There’s a way to generate “income” from dead investments, even if they aren’t optionable—how to hedge mutual funds with options.

8 min read  |  Advanced Options Strategies
Trading Tips for Your Non-Trading Millennial Friends September 30, 2015 8:04 PM   |  

Turn conventional investing wisdom on its head and don't do what countless others have tried before you. Good habits and knowing what not to do are a must.

5 min read  |  Options Trading Basics
Swim in the Deep End with Out-of-the-Money Options May 13, 2015 8:00 PM   |  

Looking to supplement returns? Consider selling out-of-the-money options. Unless there are large price swings, these options don’t change much.

2 min read  |  Options Trading Basics
Options Aren’t Dangerous, People Are: Debunking Four Myths April 23, 2015 5:00 AM   |  

Misconceptions hound the option market and those who’d like to elevate their trading to include option contracts. Taking that first step often hinges on shedding these four myths.

3 min read  |  Options Trading Basics
Trading in Retirement: To Be Feared or Revered? March 18, 2015 4:00 AM   |  

If you choose to use trading as a source of retirement income, it’s important to keep in mind the risks that come along with the potential rewards.

3 min read  |  Portfolio Management
Options: Collar Me Impressed October 31, 2014 8:00 PM   |  

The protective collar can help diversify an investor’s portfolio by combining two basic options strategies, covered calls and married puts.

4 min read  |  Advanced Options Strategies
Options: Got Ya Covered September 30, 2014 8:00 PM   |  

The covered call is one of the most widely-used portfolio diversification tools, but it’s important to understand how it works.

5 min read  |  Options Trading Basics
Options Lab Part 3: Trading Hunches with Bullish Strategies October 31, 2013 8:00 PM   |  

Two basic options strategies can help you be a better kind of bullish: covered calls and cash-secured puts.

4 min read  |  Advanced Options Strategies
When the Mystery Is Gone: Trade Like an Options Market Maker October 12, 2013 9:22 PM   |  

Who’s the mysterious person behind the curtain who takes the other side of your trade? Market makers are paid to take risk and provide market liquidity. Find out how this helps you.

3 min read  |  Options Trading Basics
Options Lab Part 2: Income Strategy for the Faint of Heart September 30, 2013 8:00 PM   |  

Learn how to use select options strategies to earn income on your stock portfolio.

6 min read  |  Advanced Options Strategies
Know How to Protect Your Basket? Consider Using Options July 12, 2013 7:43 PM   |  

Options aren’t always for speculation. They can be used for portfolio protection.

7 min read  |  Options Trading Basics
It's About Time: Range-Trading with the Calendar Spread December 31, 2011 7:00 PM   |  

We know stocks move up and down. But much of the time, they're range-bound. The calendar spread takes advantage of that at a fraction of the stock price.

6 min read  |  Advanced Options Strategies
Markets Move. Get Over It. An Options Volatility Primer July 1, 2011 4:50 PM   |  

Without stock and options volatility, there are no trading opportunities. So to revere it rather than fear it–you need just need to “get it.”

13 min read  |  Advanced Options Strategies

Do Not Sell or Share My Personal Information

Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.

Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

adChoicesAdChoices

Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. © 2024 Charles Schwab & Co. Inc. All rights reserved.

Scroll to Top