To The Moon

If you're in a challenging investment position or holding a stagnant stock, it's frustrating to watch your portfolio not grow. One strategy is selling a covered call to generate income while waiting for potential stock performance.

But what exactly is a Covered Call?

📘 The Options Handbook explains it like this—

▶ What Is a Covered Call? 💡

A Covered Call means selling a call option while holding at least 100 shares of the stock. The goal: generate extra income from option premiums.

▶ Example 📊

Let's say you own 100 shares of Pear Inc., currently trading at $95. You're not expecting it to shoot up next week, but you'd be happy to sell at $100.

So, you sell a one-month $100 call and collect $5 per share, $500 total. Two possible outcomes:

• Stock stays under $100 → Option expires worthless. You keep the $500 and your shares.

• Stock rises above $100 → Your shares are sold at $100. You miss out on any upside above that, but still earn a solid return and keep the $500 premium on top.

If the stock doesn't move much, you can repeat this every month, collecting regular cash like rental income.

▶ Who Is It For? 🎯

• Long-term investors: Already holding a sizable stock position, especially in stable blue chips, and not expecting a big rally soon.

• Take-profit planners: Willing to sell at a target price, even if it means missing further upside.

• Trapped investors: Holding underwater positions and looking to collect premiums to lower cost and improve break-even chances.

🎁 Want to trade Covered Calls like the pros? Grab The Options Handbook in the Tiger Coin Center—packed with clear guides, beginner tips, and pro-level strategies! 🐯

>> Redeem Options Handbook Now <<

>> Click here for the Simplified Chinese version <<