Los Angeles, CA (PRWEB) April 25, 2013
Each day billions of dollars are exchanged on Wall Street. Some of these trades are made by financial institutions like Citibank and Wells Fargo while others are made by insurance companies like AIG and Mass Mutual. One of the techniques used by Wall Street insiders to generate guaranteed income for institutional funds is selling, or “writing,” covered calls. This simple technique is well known to the institutional trader, yet it remains a hidden Wall Street secret to the self-directed investor. Now, Tyrone Jackson, founder of the Wealthy Investor (http://www.thewealthyinvestor.net), announces a series of covered call trading classes, workshops and seminars that teach the individual investor how easy this lucrative trading strategy can be.
“You don’t need to be a sophisticated Wall Street insider to master covered call writing,” says Jackson. After 17 years of successfully trading his own money, Jackson has gained a wealth of knowledge about sophisticated as well as basic trading strategies. In Jackson’s workshops, classes and seminars he teaches both the experienced investor as well the beginner how to trade successfully in bull and bear markets at home through their online brokerage account. Jackson designed his courses for the non-professional trader with the assumption that his students lead full, busy lives. Therefore several of the strategies he teaches require a minimal time commitment.
“I have found that most investors need more monthly residual income from their stock market portfolios. Rather than investing in Mutual Funds or buying and holding stocks hoping for an increase in value, I teach my students to dedicate a portion of their trading account to covered call writing every month." The truth is that any investor with an online trading account can earn guaranteed income each month selling covered call options. However, in order to do this acquiring the right education is vital. Here’s how trading covered call options works.
If an investor owns 1000 shares of Disney stock at $55 per share and is willing to sell those shares for a profit, that investor can sell the right to a second party to purchase their shares at $56 dollars per share. In Wall Street terms, the investor would be selling the right, but not the obligation, to a second party to buy their Disney shares at the $56 strike price. The income from selling the rights is referred to as the premium. The premium for selling a thirty-day call option could be as much as one dollar per share.
So what’s the down side of selling covered call options? If Disney shares should rise to $61, in the above example the investor would be obligated to sell their shares at $56. However, if Disney shares never cross $56 by the option expiration date, the investor gets to keep both the shares plus the premium income. The key is knowing which stocks to hold for selling covered calls and which to invest in for the long term.
For decades,covered call option selling has been a well kept Wall Street secret used largely by savvy Hedge Fund managers. Today, no matter what your background, the online trading software in most brokerage accounts has made it possible for the retail investor to profit right along with the big boys.
A new itinerary of affordable “Wealthy Investor” seminars is being finalized now. Priced substantially lower than typical investment workshops, “The Wealthy Investor” is about reaching the greatest number of people to maximize their good fortune. The next opportunity to learn more is through two free teleconference workshops, "Basics of Stock Market Success," on Tuesday, May 7 & 21 from 7:00 - 8:00pm PDT. Visit http://www.TheWealthyInvestor.net to sign up for the teleconference calls and also get a free "Stock Market Success" newsletter.