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Barchart
Barchart
Rick Orford

Expected Move: The Secret Weapon for Selling Covered Calls

Trading options involves predicting the underlying asset's price, and then you can choose the strategy that supports your prediction. This is especially true with options trading strategies like covered calls, which require you to own the underlying security - like a stock.

As a refresher, covered calls aim to generate income by selling call options on stocks you already own. This strategy works best when you expect the stock price not to exceed the call option's strike at expiration. 

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