| Covered calls can be a great way to profit when the | | | | 3. There are good long term investments |
| stock market is trending sideways. If you don't know | | | | There are always good investments in the stock |
| which way stocks are going to go it isn't a bad idea | | | | market that you can afford to buy and hold for a |
| to sell some calls on strong stocks. | | | | few years. Why not buy a strong ETF and sell few |
| Some reasons Selling Covered Calls can be a good | | | | calls on the stock while it is going through a sideways |
| idea are. | | | | trend. |
| 1. Monthly Income | | | | 4. If the markets recover you will be in a good |
| Selling calls is a nice way to make a monthly income | | | | position |
| from the stock market. If you are a dividend | | | | If you buy some strong stocks to sell calls on and |
| investor a 2-5% cash flow after a year might seem | | | | then the market starts making new highs, well you |
| good enough. Forget about dividends covered calls | | | | are going to be in a spot where you own a stock |
| can normally produce a profit of 2-5% a month if | | | | and the markets are going up. You can always stop |
| you do it right. | | | | selling calls on it and just enjoy the benefits of a |
| 2. Non Trending | | | | rising market. |
| There is no need to look for a trending stock and | | | | Of course if the markets start heading down you |
| attempt to ride it all the way up. Selling covered calls | | | | can stand to lose a lot so it might be wise to have |
| allows you to profit from the stock market even if it | | | | some point where you are going to limit your losses |
| is not making new highs. The only thing you need is | | | | if you are wrong. |
| for the stock not to move down too much. | | | | |