Gainesville, FL (PRWEB) September 28, 2007
LogiCapital Corporation, which owns and operates http://www.callwriter.com, widely considered the world's foremost website for covered call writers, announced that it has added a major upgrade to its website - at no extra cost to subscribers - by adding proprietary new lists of trade candidates for covered call and naked put writers to its existing roster of lists.
The classic covered call trade is one in which the conservative investor buys a stable, high-quality stock and writes a call option on it for income; the call sold will generally expire the current or next month. CallWriter offers numerous lists of covered call trade candidates. CallWriter's new SuperPut lists take the concept to an entirely new place. The SuperPut lists add a protective put to the classic covered call trade. The protective put purchased will be long-term, having an expiration that is 6 to 8 months out in time.Here are the SuperPut lists currently running:
- ATM-ITM SuperPuts (Top 90 plays)
- OTM SuperPuts (Top 90 plays)
The protective put limits risk in the trade to a few percent of the amount spent to open the trade. Thus if the amount spent to open the trade (including buying the stock, buying the put and selling the call) is $40, the protective put will limit risk to a maximum of 10% - in this case $4.00. Many times the risk is less than 5%. Here are a few of benefits of our SuperPut lists for covered call writers and income investors:
- Great returns on the covered calls written
- Long put protects the stock's downside
- Limits risk to a few percent of the trade debit
- Lets you precisely define risk on trade entry
- Long-term put costs are very cheap and maximize return
- Work in bull, bear and flat markets
- The trade soon becomes riskless
- Makes a falling stock price someone else's problem
The length of the put (6 to 8 months) allows the covered call writer to keep selling calls on the stock month after month. After a couple of calls have been written (and the put's cost is recouped), there is no longer risk in the trade. The protective puts featured on our SuperPut lists are quite cheap, usually not more than 2.5x the current-month's call premium, and sometime less. This makes it easier to assure that the SuperPut trade - low risk to begin with and soon riskless - will nonetheless yield a strong profit. More details on the SuperPut lists.
Several SuperPut lists are up and more are coming. Our members' website explains the lists and how to use them.
NAKED PUT LISTS
CallWriter also has added exciting new lists of Naked Put trade candidates. The naked put strategy is one in which the investor does not buy the stock but sells the uncovered put to generate income. Many covered call writers prefer naked put trades because 1) it is not necessary to buy the underlying stock, 2) available margin can be very advantageous, and 3) the investor earns interest on account funds used in the trade. Here are the Naked Put lists currently running:
- S&P 100 (Top 30 plays)
- S&P 500 (Top 30 plays))
- Nasdaq 100 (Top 30 plays)
- ITM Puts (Top 90 plays)
- OTM Puts (Top 90 plays)
Covered call writing is a simple trading strategy that consists of buying stock and writing call options against it, or writing call options on stock already owned. The sale of call options produces income to the call writer from the underlying stock. Covered writing, an option trading strategy designed to produce a consistent 3% to 5% monthly return, continues to gain in popularity as traders realize how easy it is to do and how simple the trades are to manage.
Visitors are welcome to sign up for the MONEY newsLETTER, our free newsletter devoted to tips and tricks of the trade on covered call writing, stock option trading, stock option strategies, technical analysis and much more. Check out our archive of past newsletters, which is available free to the public.
Callwriter.com, a highly popular website for traders devoted to covered call writing, features the world's only Real Time Lists™ of the highest-returning covered call, covered call with protective put and naked put trades that update every few minutes all through the trading day, the Trade Management Calculator™, the world's only calculator designed to manage open covered call writes for maximum profitability, and extensive free education on covered call writing, stock trading and stock option trading. CallWriter makes the CallWriter Method of covered writing, a complete system encompassing trade selection and analysis, trade planning and trade management, available on its site to members at no extra cost.
John Brasher, Publisher