Covered Calls

Suze Orman discusses the concept of the covered calls options strategy explains how it is created.  She suggests that she enjoys writing covered calls in sideways to down markets as they can provide a steady stream of income.

The speaker discusses some conservative options strategies for investing in a bear market.  He talks through the concept of deep in the money covered calls and how they reduce your overall purchase price of the stock.  It provides the investors a big margin of safety.

The speaker discusses the basics of the covered calls options strategy and discusses the risks & benefits by using a live trading example to illustrate how the covered call would work.  He provides some screen criteria that he uses to find stocks which he would consider prime candidates for covered call writing.  His strategy includes screening price of the stock, average daily volume, market capitalization, and EPS revisions, among others.