Covered Call strategy

[Pornstar]

Has anybody here successfully implemented the covered call strategy over a significant period of time? I am considering doing this, but it seems to me this would only be an effective strategy in a flat market. Very interested to hear from somebody who has given this a fair shake.

 

[cocka]

Has anybody here successfully implemented the covered call strategy over a significant period of time? I am considering doing this, but it seems to me this would only be an effective strategy in a flat market. Very interested to hear from somebody who has given this a fair shake.

When implementing this strategy, you are probably hoping for a slightly bullish position on the share. I myself don't like this strategy, it limits you're upside greatly. i.e. if share goes up stacks, you'll only profit up to your call's strike price and the money you get for the call, if it goes down heaps you'll only be slightly compensated by the money you get for the call. So only real profits to be made if share flat lines or goes up marginally, how many shares do that?

 

[Hawk43]

It is a great strategy, i'd suggest doing research on the US market and trading them there, the US market has a number of advantages over the aus market.
True that it limits your upside but on an annual basis if you can make 50% writing covered calls then that is going to be a lot more than the market returns, even in a very bullish year.
Remember that with this strategy there is absolutely no extra risk to just owning the shares outright. Different plays can be implemented to limit the downside risk, like writing them in the money, buying puts etc.

It is a simple strategy to learn but can take time to master, a mate and i trade them and making around 3-4% per month atm