Edit Holy Sh % I m reading the reviews and they are obviously fake and probably paid for by the author Buyer beware If you buy and read this, then you will see what I mean Save your money.
Average I am still new to investing but this book has helped I am excited to start selling covered calls now.
This books is like a simple article No rigorous analysis or data or research On the plus side it takes 20 minutes to read.
I was debating whether to give this ebook 5 stars or 4 stars I think my perfect rating would be 4.
5 stars I went with 5 stars however for the following reasons.
PROSsThis book was short but to the point I didn t get a lot of mumbo jumbo It delved right into covered calls Moreover, this book used real world examples So, you won t see the author trying to sell stock on XYZ company Rather, the author picked one company KO and stuck with KO for the remainder of the book I liked that.
The links that the author provided were very helpful Even though I am writing this review in August 2015, I was able to go back and see where the author got his numbers from and was able to arrive at the same numbers.
In my opinion, the biggest pro to this book, and one of the reasons why I went with the 5 stars instead of the 4, was that the author provided his exact approach to how he picked stocks I didn t have to purchase that information separately , and he even suggested a few stocks that, at the time of his writing, qualified based on his criteria I ve tried reading a lot of information about covered call writings and either, in those cases, the books or articles dealt with theoretical numbers or even if they dealt with actual numbers, I haven t found many that talks specifically, step by step, how they go about selecting the stocks This book does It was simple and again to the point and that s what ultimately make me give this a 5 star rating.
CONSAlthough I gave this book 5 stars, it is by no means perfect I really liked the fact that the author picked Coca Cola KO and used that throughout the book However, I thought the content, though on point, was a bit too concise It would have been awesome if the author picked another company or two, maybe in a different sector, just for comparison.
Also, there is little advice on how best to manage a position once entered and even an exit strategy For the advice that was there, the author doesn t do the best job of explaining the material in the most simplest of languages and so sometimes, a beginner such as myself have to reread the material.
In addition, although the author mentioned one broker, there was no real focus on how to select a broker, etc In other words, this book was very narrowly focused on the covered call strategy which is not necessarily a bad thing and not so much about investing overall, risk management, or any of those other important concepts that one should know before investing.
Finally, the bonus chapter about how to do covered calls using a small account I thought was a bit complex and confusing that the actual content in the book.
SUMMARYI think the positives vastly outweigh the negatives That being said, consider the price of the book I don t think the author expects you to pick up this book, read it today and start investing in covered calls tomorrow May he does, I don t know I think anyone interested in covered call writing should do their due diligence first I can say this much I have been interested in covered call writing for a few months and never felt like I had the courage or adequate education to just do it After reading this book, at least I have a starting point on how to pick stocks Armed with this information along with all the other reading and or research I ve done, I feel as if I am ready to start trading a small position to learn the process.
I always use the concept of an annualized rate of return Dividends Option Premiums divided by Cost divided by days till expiration times 365 include the dividend only if the x dividend date is within the option period and the Strike price is above the current quote The missing helpful piece of information is that covered calls can be written against Market Average Indexes such as the S P 500 Index SPY, the Dow Jones Industrial Average DIA, the S P 100 Index OEF, and the High Dividend DOW Stocks DVY The dividends are not as good and the Option premiums are a little less then individual stocks, but the Market Index ETFs add the important factor of diversification.
This book was very easy to understand The content was straightforward with examples on how to sell covered calls This book is really a small investment in the knowledge needed to get comfortable with selling covered calls Kudos to Matt for writing something that is understandable.
New To Trading Options Looking To Generate Some Extra Monthly Cash Flow Covered Calls Are The Place To Start Perhaps You Are Sitting In Cash, Scared To Get Back Into The Stock Market But You Are Also Unwilling To Lock Up Your Money In A CD That Pays Next To Nothing Covered Calls Are A Great Way To Slowly Ease Back Into The Market, While Starting To Generate Some Income This Conservative Strategy Is Also Often Used By Buy And Hold Investors To Generate Extra Income From Stocks In Their Long Term Holdings Even If You Know Nothing At All About Trading Options, This Guide Will Quickly Bring You Up To Speed This Book Will Teach You How To Understand Options Terminology Like Calls, Strike, Expiration, Etc The Crucial Difference Between Naked Calls And Covered Calls Don T Trade Options Until You Know The Difference How To Find Stocks That Are The Best Candidates For Covered Calls How To Pick The Best Strike Price And Expiration Date For Your Calls Covered Calls Made Easy Will Teach You Everything You Need To Know About The Most Popular Options Trading Strategy And If You Ever Get Stuck, You Can Always Reach Out To Me By Email Provided Inside The Book , And I Will Help You Ready To Get Started Scroll To The Top Of The Page And Select The Buy Now Button