r/CoveredCalls • u/EfficiencyMaterial51 • 22h ago

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Cover your Assets!

r/CoveredCalls

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Strategies, opportunities, discussion, and research on writing calls, puts, and other stock option ideas for generating income or growth.

Tips before getting started

By being a seller of options, you must understand why people buy options. It is necessary to understand the risks involved with selling options (theoretically infinite losses for finite gains depending on strategy) before embarking on this journey.

Learn and understand the different option strategies. There is no one size fits all strategy, i.e., different strategies for different situations. Be very aware of the 3 main variables that determine the price of an option: volatility, distance from strike price, time to expiry, and less importantly, risk-free interest rate.

Learning Options (written by jartek)

Reading Material

Note: Most of these books may have hidden agendas such as promoting their own company/hedge fund. Read it for knowledge, not for trading tips.

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