Trading option advice

Discussion in 'Ask any question!' started by JerryG13, Feb 9, 2021.

  1. JerryG13

    JerryG13 New Member

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    I’ve been reading up and watching some videos on calls and how you can actually profit from them. I don’t fully understand a few things and would love for someone to help me out and answer a few questions!
     
  2. spindr0

    spindr0 Active Member

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    You're not going to learn much more than the basics online.

    Pick up a copy of "Options as a Strategic Investment" by Lawrence G. McMillan.
     
  3. spindr0

    spindr0 Active Member

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    The covered call strategy could be called safe if one ignores the risk of ownership of the underlying. However, as an aggregate position, it has an asymmetric risk/reward with a capped upside that has limited profit potential and you bear all of the downside risk. A vertical spread evens out that asymmetry and is a much, much safer position.
     

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