Writing Covered Calls – Strategies and Traps

Covered Calls Traders and investors make a common mistake when writing covered calls. Make sure you don’t fall into this trap!

Covered Call Trading – Process Definition

Covered call trading is simply selling one call option against 100 shares. An investor or trader receives a cash prize for selling a call option. This call option will eventually either end up useless or it will be exercised and the investor’s shares will be sold at a predetermined price.

If the call option is exercised and the shares are sold, the maximum return will be realized on the covered call transaction. The investor will retain the premium from the sale of the call option and will receive cash from the sale of the shares.

If the call option expires, the investor will deduct both the cash premium from the sale of the call option and the stock. You can then sell another call option and repeat the call recording process.

Covered call position risks

The most commonly assessed risk of a covered call position is a reduction in the value of the shares. A small drop is not a concern as the investor or trader can continue to sell covered calls against stocks and are protected from a modest price drop by the premium collected with each subsequent sale. However, a significant deterioration in stock value is a threat that needs to be planned.

Another commonly valued risk is writing a covered call – it’s missed costs. By selling a call option against his shares, the trader puts a limit on the potential return on the shares that are rising. Each covered call position carries the maximum return, while uncovered stocks can rise endlessly.

Many covered call traders respond to rising stock prices by buying call options. This usually results in a loss if the call option is redeemed for a larger amount than was received from the sale. It is hoped that the losses incurred by the call option will be offset, and indeed exceeded, by continued stock growth. Of course, the danger of such an approach is that stocks will not continue to rise.

More importantly, an investor or trader trying to redeem a valued call option has fallen victim to a discretionary call recording trap.

Trap call writing strategies

A distinction needs to be made between a systematic call recording strategy. Systematic covered call writing involves the systematic sale of call options against stocks for the sole purpose of collecting a monthly premium. The only concern with the underlying stock price is the possible early exit from the position that caused the stop loss. The goal is to benefit from collecting premiums over time, not from unlimited capital growth.

Discretionary traders will write calls if they think their stocks are unlikely to move higher. Their hope is to get a premium from the sale of call options during the market consolidation period, but will allow stocks to rise during market rallies. However, no one can predict future market actions.

What invariably happens is that once the calls are sold, the shares break out of the consolidation model, forcing them to redeem. Once the calls are redeemed, the market may or may not reach new highs. Eventually, there will be a pause, and the author of the discretionary call will again have fun writing another version of the call. Because it is extremely difficult to pinpoint market time, most discretionary call traders find themselves at the losing end of the equation.

Write or not write, call options

The pitfall of trying to get the “best of both worlds” is that we miss the best that each world has to offer. If you are going to write calls against your stocks, do so consistently or systematically with an emphasis on collecting a monthly premium. The premium from the monthly option sale is the place where you will find your profit.

An investor in growth must focus on maximizing the cost of capital and learn to be patient while consolidating the market. While boosting profitability with a random premium collection is an attractive idea, you’re probably best off sticking to your core strategies. If you want to take advantage of consolidation, there are alternative approaches to collecting premiums that may be more in line with your overall goals.

Of course, there are those who can successfully combine strategies. Even these few talented ones will develop their techniques with a clear purpose. Wherever you fall into a wide range of investors and traders, remember your goals and objectives and beware of the constant trap that exists for those who replace short-term profits with their long-term strategy.

Cheap high quality entry-level subwoofer – JL Audio 8W0-4 review

Most consumers are not fanatics. This means you are probably looking for a product that gives you value, quality and performance. You don’t necessarily have to demand that your product be the best of the best or the most effective on the market. If you’re a car audio fan, but not necessarily an enthusiast, you probably need a subwoofer that could create bass, enough to make your car rumble or improve the deep bass of your sound system.

If this is you, then the JL Audio 8W0-4 subwoofer is your choice. This is an 8-inch subwoofer that strikes quite a bit. It is capable of producing 150 watts of maximum power and 75 watts of continuous RMS power. At first glance, an 8-inch subwoofer may not be the scariest cosmetically, however it can really produce bass outputs of excellent quality due to its design.

The woofer consists of a polypropylene cone with a sealed polypropylene dust cap, a standard car subwoofer and a speaker that provides rigidity as well as stability in any environment. The cone is surrounded by a large foam edge, which allows the subwoofer to maintain excellent alignment when operating at high deviations. Beneath the cone lies a wide flat spider progressive roll that allows the 8W0-4 to provide excellent mechanical control and placement.

To maintain structural integrity, the JL Audio 8W0-4 has a ventilation collar, or VRC, that acts as a pillar under the bridge, acting as a support, absorbing energy associated with performance. The last feature to note is the 6-layer voice coil wiring on the former, world-famous automotive industry as Kapton. The result of this feature is the subwoofer’s ability to process large amounts of thermal energy without losing performance or damaging itself during power transfer.

Another nice thing about the 8W0-4 is the fact that its compact size usually doesn’t require a closed box volume of more than 0.375 cubic feet or a moved box volume of more than 0.75 cubic feet. This means that the JL Car Audio8W0-4 is great for small spaces such as compact cars or hatchbacks.

With such features and an incredibly affordable low price of less than $ 40, how can novice car audio give up such a car subwoofer?

Is a hot oil treatment right for you?

You may have tried several ways to add volume and shine to your mane. Hot oil treatment is one of these methods and is one of the most popular among people who aspire to shiny hair. There are several chemicals that can give your hair an instant shine, making them soft and smooth. This particular method is famous for doing the same with the added benefit of being a natural process with no side effects of harmful chemicals.


Applying hot oil is very simple and can be done at home. All you need to do is properly heat the hair oil. You do not have to heat the oil directly, but put the bottle in a bowl of hot water and bring the oil to the appropriate temperature. Once the oil has warmed up, massage his scalp so that each hair shaft gets the oil evenly. It will take care of dry and curly hair, making the mass soft and supple. After massaging the oil for a while, wrap your hair in a warm towel or shower cap. Hold for thirty minutes, then rinse thoroughly. Apply a good quality shampoo and you will see great results.

Types of hot oil treatments

If you look at the market, you may feel a little embarrassed by the many similar treatments and products that are available. However, the main two types will be the ones that are readily available in the market and the ones that you can cook at home. Of course, hot oil treatments can be used in beauty salons. But compared to pets, the other two will be a little more expensive.

The benefits of hot oil treatment

Age-related natural beauty treatments have high beneficial values ​​that even modern treatments cannot offer. This is mainly due to the high concentration of chemical ingredients. Hot oil treatment also has several benefits. First of all, it is an extremely beneficial natural conditioner that gives new life and volume to dry and damaged hair. At the same time, such a regular procedure will strengthen the hair shaft, thus making it strong and shiny.

Disadvantages of hot oil treatment

The main disadvantage that can be noticed is the temporary effect or benefit offered by hot oil treatment. This is not a long term solution for damaged hair and it needs to be repeated at least once a week for best results.

The difference between natural and synthetic wigs

There are currently two types of wigs on the market: real and synthetic wigs. These two products are different because real wigs are made of real hair and the other is not. Alternatively, you can also use hair color for real wigs, but for artificial ones, this is impossible. In addition, real pieces of hair also look very natural. On the other hand, synthetics really do look unnatural.

Another factor that distinguishes real wigs from synthetic ones is that they can be designed the way you want. Even if you use curlers, irons and other tools on them, they won’t hurt. But if these hot styling products are used in artificial wigs, they will melt. Moreover, these products also differ in price. Genuine ones are usually more expensive, so if you are really interested in buying it, you should be prepared for the price. If you have a limited budget but you still want to have it, then you should choose synthetic.

Many users of real wigs have also proven that they can last longer than artificial ones. One of the features that comes with these products is a breathable cap. Because of this your scalp will not sweat when you use this wig because it allows air to get inside. Although real wigs have a lot of amazing qualities and features, synthetic products also have their own. First, there are nearly 100 colors of these wigs on the market. When it comes to diversity, they are really superior.

Are you a very busy person? If so, then you should not have free time to dye or put on your wig. Having a synthetic wig will not waste your time. Also, even if you can’t decorate this wig with hot tools, you can still dye it if you want. Thanks to this, you are still confident that you can change your look with this wig at any time. While this may be the case, human wigs are still considered the perfect choice because they are durable and versatile. So choose real hair wigs now and take advantage of the many benefits they offer.

What is international investment and why is it important to me?

Diversifying your international investment portfolio is a key part of asset management if you are looking for long-term growth. Diversification allows an investor to withstand a fall in some sectors, especially when investing internationally in stocks and bonds.

International investment in foreign stocks is hot, and recent emerging economies, such as India and China, offer U.S. investors looking for international investment opportunities a great prospect to get a real return on their investment. And interest in emerging economies has grown more than ever with the recent boom of automakers, internet companies and e-companies. While this may seem similar to the online boom of the early 90s, international investment in funds will remain.

Investments in funds internationally offer diversification, and the biggest advantage of investing abroad is the fact that markets operate in different cycles. If the U.S. economy is in recession, some other foreign country will rise, and so having a portfolio with more than one country allows you to counter volatility in one market and reduce overall risk.

It is interesting to note that international funds over the past 5-10 years have performed much better than US equity funds. The advantage is undoubtedly the diversification of opportunities for international investment, and international funds offer higher returns on your assets.

For risk-averse investors, international investment in future markets is a great idea. Countries like Brazil, Thailand and Indonesia offer investors huge profits but also take risks. It is important to remember not to be over-exposed to any one fund if you are diversifying for asset management. You should not consider getting 15% or more in your portfolio as a rule.

You also have the opportunity to diversify your wealth through international funds. There are many types of investment funds that offer you the opportunity to create a diverse portfolio. Look for small, medium and large stocks around the world from various developing countries like China to high-industry and well-established economies such as Japan. You can also make international investments in the form of real estate investment funds and acquire real estate just like other stocks or commodities.

Asset management should help in diversifying your portfolio and one good way to pay attention to international investment in fund management.

Which portfolio mix is ​​best for you?

When it comes to investing and / or personal financial planning, there is no such thing as a single size – suitable for everyone! Depending on age, needs, goals, priorities, risk tolerance, goals, etc., the most appropriate strategy can be determined, on a case-by-case basis! Your total assets, liquid assets, income (from a variety of sources), job security, reserves, and personal level / comfort level are important factors in determining the best path for you in terms of creating a personal, investment portfolio. With this in mind, this article will attempt to briefly review, examine, consider, and discuss what mixing may make the most sense for your particular combination, set of conditions, and factors.

1. Risk tolerance: One of the first things to consider is your personal risk tolerance. That means, in simple words, how you can balance, invest and be able to sleep at night! Many people confuse deadlines, especially when it comes to mixing, difference, growth and income. How often have you heard someone say that growth is an investment that they have held, not offered enough income, and / or return-oriented investments that do not provide growth / growth in prices, etc.? You need to consider how much risk they are willing, willing and / or able to tolerate and take!

2. Goals / objectives: Define, clearly, your individual goals and objectives when considering a mix of your portfolio. Some goals include: saving on a child’s education; creating a source, acquiring a future home; pension fund development; etc. It usually makes sense to carefully choose the right combination of investments for each goal. Achieving goals is usually easier / simpler when done over a longer period of time, so you can take advantage of the concept of averaging the value in dollars. This approach often minimizes the overall – market risk, because when purchases are made at a certain point, every month, market fluctuations become much less, relevant and significant!

3. Needs: We are personal and have our needs! Avoid trying Keep up with the Jones, because what might make sense to them may not make sense to you and what you need! Do you need growth, current income, future income or some combination, etc.?

4. Small against big – capitalization, capital: We often hear the terms, small – cap, against, large – cap. This refers to the amount of capitalization of an individual company, investment or mutual fund. The value, monetary stability and strength of any company can be a security factor, etc.

5. Bonds and preferred shares: Corporate bonds are debt that companies use to raise money / capital. Some are unsecured, but we generally consider secured bonds (bonds) provided by the finances of this company. So far, many believe bonds are safe, depending on the quality of a particular company. Preference shares are usually preferred forms of shares that regularly pay dividends. Most people who invest in these two types of investments are looking for a stable income. At the moment, because of record lows, interest rates, existing bond prices, are high because they were issued when rates were higher and the bond price is adjusted because it determines the overall yield.

The more you know and understand, the better you will identify a set of portfolios that can best fit your individual needs, goals and priorities. Become a smarter investor!

Profitable ETF trading strategies are a smart experiment with relative strength

Typically, traders will apply various technical analysis indicators to the instrument’s price behavior to find points of advantage. Many times they are combined in systems of increasing complexity and obvious sophistication. However, all of these concepts are based on direct price behavior. However, this is not the only way to use technical analysis.

Here is an example of using technical analysis in an unconventional way to quickly and consistently assess the relationship between a broad index and one of its major components.

Start by calculating the relative strength of the tool compared to its index. Perform this calculation by looking back. This makes sense depending on the timing you are going to keep the tool. As an example, you might assume that volatile stock trading with a large capitalization in the industrial Dow 30 gives the advantage to agile traders who cannot afford to observe the market during the day.

You might assume that Dow 30 Industrials is a smart set of ultra-large-cap stocks that are not likely to go bankrupt overnight and that are behaving conservatively compared to some small-cap stocks and foreign stocks based on rich analysis and broad ownership of institutional money. It is rare for these stocks to be wildly wrong, and their stock performance is characterized by relatively smooth price changes from day to day.

At any given time one or more of these stocks will exhibit leadership qualities in that they will outperform the broad index and its counterparts in one to four weeks. At the same time, there will be many of these stocks that are not working at the same time. There comes a point when individual leaders and laggards can no longer maintain their extreme behavior, and they begin to return to the average of the index itself.

By calculating the relative strength of each of the stocks on a daily basis and plotting that performance on a standardized scale from 0 to 100 for each stock, you can find times when extreme conditions begin to stabilize and cancel out.

In case of lagging behind it can warn you of the possibility of buying a price just as it starts to return to average. In the case of leaders, this can alert you to the possibility of ending a period of transformation.

By applying these relative strength curves to a technical indicator based on a channel such as Williams% R, you can view the upper 20 and lower 20 percentiles as regions of extreme behavior and thus prepare yourself for the reverse of the previous trend.

I have not yet subjected this idea to rigorous reverse testing, but the concept is intuitively appealing. This understanding is based on inductive reasoning based on many years of observation, and may be worth a closer look.

3 simple points on how to determine that your Babolat Aeropro Drive GT is a fake

With the release of the new version of the Babolat Aeropro Drive GT in 2010 an inevitable wave of fake or counterfeit copies that will also flood the market.

It is a pity that the market already has less reliable copies of this racket, as it is a relatively new addition to the tennis market.

It also seems that counterfeiting is becoming more and more accurate art, and this makes it increasingly difficult for the untrained eye to distinguish a real thing from a counterfeit.

This can be an expensive as well as a frustrating lesson if you are one of the unlucky people who sells what is not what he claims to be.

However, there are a few steps you can take to minimize your chances of doing so.

Some things you can use to identify a fake racket include;

  • Inside your racket will look disorganized and poorly constructed if you remove the cap.
  • The central partition should be straight in the true copy but skewed in the forgery.
  • The background where the text “GT Technology” is located should have a gray background with small lines. Fake copies will almost always have a black background with no lines visible to the naked eye.

The Aeropro Drive GT is a moderately expensive but extremely popular racket, and it has become popular due to the fact that Rafael Nadal openly claims to use this racket in competitive matches.

Prospects and prospects for real estate investment in 2010

What will happen to real estate?

For most people, real estate remains a critical part of personal value. Despite the recovery of the stock market, the average value of an American family has fallen by about 25% due to falling real estate values ​​and investment assets.

Market Trends Overview – Focus on Boston

Although still suffering from prolonged turmoil in key employment areas such as financial services, insurance, real estate (FIRE), large metropolitan areas such as Boston and nearby are showing signs of stability. Although the employment picture remains bleak, Boston’s statistical area (MSA) showed the largest increase in property values ​​during 2009, according to a recently published Zillow Real Estate Market Reports report.

Even with strong gains fueled by the federal government’s first home loans and keeping mortgage rates low, nearly 25% of homes that are “inverted” on outstanding mortgages remain.

High unemployment persists as companies continue to announce layoffs or postponements. And given the expected wave of creative mortgage products such as Alt-A loans, interest-only loans and adjustable-rate mortgages, resetting to higher rates puts pressure on homeowners who can’t refinance due to lack of work or lack of value is likely to be an increase in foreclosure.

According to a study by HousingPredictor.com, the real estate boom in major U.S. metropolitan areas is unlikely to happen after 2020. With more than 7 million unemployed and another 20 million on the underemployed list, it could be 2017 or 2020. when these workers are absorbed. And selling real estate depends on who has the job.

The real estate boom typically lasts 7 to 10-year cycles with some external trigger that caused a crisis that exploded a bubble. The current situation is unlikely to be otherwise.

Implications for investors

It is expected that in 2010 the vacancy rate will rise to about 7-10%. The constant decline in trust in work hinders family formation as people may postpone marriage, return to parents or relatives, or double friends.

As foreclosures increase, there is likely to be a greater demand for housing replacement, so the share of vacant space may decline. And as workers try to maintain their ability to relocate in search of work, the demand for rent is likely to grow as well. The caveat is that there will also likely be a number of supply options that will put pressure on rents. And as a result of poor economic conditions, landlords can expect that the credit quality of tenants will deteriorate.

Apartments will have to compete with increasing supply of single-family homes. Currently, the share of single-family homes that can be rented has grown to almost 10% compared to the long-term average of 4.5%. A change in the policy of the mortgage service agency Fannie Mae will no longer evict tenants living in houses or apartments where landlords have been imprisoned. This is likely to mean that the largest landlord of single-family rentals in the US will be a quasi-governmental organization.

Sales in the apartment building are distant and are likely to continue. Potential buyers continue to expect price stabilization. Limit rates will continue to shift by 1% -2%, approaching the 2002 rate (8.2%), which will directly contribute to downward pressure on prices in the range of another 10% to 20%.

And given tougher underwriting criteria, such as higher down payment requirements, the number of investors able to purchase real estate is likely to be limited. But those investors who have capital and credit will have the opportunity to buy when prices stabilize.

Stock market tips and commodity market investments and mutual funds

If you think that the Indian stock market is not designed for small players, you are wrong. According to the survey, the investors section includes not only large corporations and wealthy individuals who invest money en masse, but also small investors covering households, students, small businesses, and the list goes on. Whether you invest big or small, an important aspect of success. If you are safe, your investment in Indian stocks will definitely bring you a good return; the opposite can happen. Here are some stock market tips by following which you can get a good return on Indian stocks:

  • Be aware of the tides of the Indian stock market; news portals or online brokerage firms will serve your purpose well. Your buying and selling decisions are based on the latest news; so keep your eyes and ears open
  • Do not succumb to rumors and do not blindly follow the advice of the stock market, published on many online platforms
  • Don’t get carried away by emotions. Investing in Indian stocks will mean either gaining or losing. Control your emotions in both cases, otherwise you will be distracted from your strategy and make the wrong turn.
  • To select potential Indian stocks, use investment tools such as fundamental analysis and technical stock analysis. By using the former, you will know in advance about the rise and fall of the stock price, and by using the latter, you may know whether the Indian stock market will be bearish or bullish. Researching and using investing tools will definitely help you choose a profitable one
  • Don’t be guided by the thought that low-cost stocks will soar very quickly; the opposite can happen; so consider all the pros and cons
  • Keep an eye on everything related to the Indian stock market so you don’t miss anything.

Having a diversified investment portfolio has been on the agenda lately. In this way, investors not only manage their risks, but also see their money increase faster than they expected. It is worth mentioning two more investment options – the commodity market and mutual funds of India.

NMCE (National Commodity Exchange) is the first modern demutalized commodity exchange in India created by government agencies. It was created in response to a press release issued by the Government of India in May 1999. In the market of goods related to this exchange, you can trade in commodity crops, food grains, plantations, spices, oilseeds, metals, ingots and more.

When it comes to investing in mutual funds, consider investing through Systematic Investment Plan (SIP) options. If you have a good income and you are worried about paying taxes, you may want to consider investing in tax planning funds in addition to multi-cap and other mutual funds. There are many options available; read the news about mutual funds regularly to make informed decisions.