Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    The Market Calls: A Primer on the Strategy of Writing Covered Calls
    The Market Calls: A Primer on the Strategy of Writing Covered Calls
    The Market Calls: A Primer on the Strategy of Writing Covered Calls
    Ebook90 pages2 hours

    The Market Calls: A Primer on the Strategy of Writing Covered Calls

    By Edward Francis Doherty

    ()

    Read preview

    About this ebook

    Every investor wants , above all, to make money. The reinvestment of profits is an extremely low risk and yet powerful wealth builder when employed with the power of compounding. With patience and joy one can apply the process of Covered Call Writing which is simply renting out the stock that you own. By reinvesting--- the power of compounding is phenomenal.
    LanguageEnglish
    PublisherTrafford Publishing
    Release dateJun 10, 2013
    ISBN9781466994683
    The Market Calls: A Primer on the Strategy of Writing Covered Calls
    Author

    Edward Francis Doherty

    The use of actual trades with specific results underscores the Authors credibility as an investor. He is an avid believer in the expression Practice Makes Perfect. The step by step explanation and the example process is powerful.

    Related to The Market Calls

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      How To Set Yourself Free

      Sep 2, 2020

      One of my clients retired at 50 to become a full-time trader, hoping he could shrug off the rat race and the typical work-sleep-work life. Fifteen years later he is still “retired” and still trading full time. Now he calls it what it turned out to be

      6 min read

    • Article

      Covered Calls: One Way to Earn Extra Income on Your Stocks Without Additional Risk

      May 2, 2018

      "Boy, I would definitely sell Apple if it reached $170 again," a client said to me recently. Like many people, she believed entering a limit order at that price was the logical next step. As we explained, however, writing a covered call option might

      3 min read

    • Article

      Discipline Goes A Long Way

      Mar 31, 2022

      The life of a trader is not what most of us might imagine it to be – that is, glamorous, exciting and paved with gold. More likely it is solitary, private, a bit boring and, when done right, provides a living. We could all be traders. We could all be

      5 min read

    • Article

      How Options Can Help Your Portfolio

      Jun 3, 2020

      For some people, options trading conjures either fantasies of instant riches or nightmares of losing everything. But those are the visions of market-timing speculators, not long-term investors. For most investors with a long-term view, trading option

      7 min read

    • Article

      A Little Hedging Can Go a Long Way to Protect Your Retirement Savings

      Jun 10, 2020

      "Don't worry, the market always comes back." If you haven't heard this comment yet -- from a well-meaning friend or co-worker, or maybe a concerned financial professional -- you almost surely will. We're all hoping for the best but bracing for the w

      4 min read

    • Article

      For Sustainable Retirement Income, You Need These 5 Building Blocks

      Jun 9, 2022

      Sometimes we have all the elements for a great retirement, but until we put them together the right way, we don’t get the result we want. I call it the H2O problem. We have plenty of oxygen in the atmosphere. Likewise, hydrogen. It seems simple, but

      2 min read

    • Article

      Pay Now or Pay Later: Reducing Taxes Should Be a Retirement Priority

      Oct 1, 2019

      Do you have a plan to help reduce income taxes in retirement? That's become one of my top questions for the pre-retirees who attend my financial planning classes or come to my office for help. If they have to think about it, it means they likely do

      3 min read

    • Article

      The Power of Index Funds

      Mar 7, 2019

      John Bogle used to joke that investing in managed mutual funds was like a second marriage: "It's the triumph of hope over experience." Bogle, an investment industry legend who died in January at 89, could have said the same about his own life. He sur

      5 min read

    • Article

      A Tax Guide for Investors

      Mar 7, 2019

      For most people, tax time is about as much fun as taking a bath with an electric eel, and taxes on your investments can be particularly confusing and irksome. Nevertheless, if you make wise use of capital losses and gains, you may find that you owe l

      7 min read

    • Article

      4 Closed-End Funds with Sky-High Yields

      Feb 1, 2018

      With robust yields and share prices trading at a discount to the value of their investment portfolios, these four closed-end funds are worth exploring now. For more about how closed-end funds work (and can add juicy payouts to your portfolio), check

      2 min read

    • Article

      How To Retire On $500,000

      Sep 23, 2019

      How To Retire On $500,000
      7 min read

    • Article

      Laddering Fixed-Rate Annuities Offers Rates That Beat Bank CDs, Plus Flexibility

      Feb 20, 2022

      With today’s low interest rates, it takes planning to create sufficient retirement income without taking more risk than you need to.  The days when you could get good income from a collection of Treasury bonds are long gone. You can get income from d

      3 min read

    • Article

      5 Things To Do In A Bear Market

      Feb 20, 2018

      Bear markets, technically, are a 20% drop in the stock market, but who wants to wait that long to find out it's a bear? Bear markets, corrections and volatility all look pretty much the same at the beginning. When the market is down 5%, how do you

      4 min read

    • Article

      Tax-Free Investment Strategies

      Sep 23, 2019

      "There's one for you, 19 for me, cuz I'm the tax man" was from the first tax protest song as performed by the Beatles. You see, Britain imposed the 95% tax bracket on the Fab Four, leaving them with 1 pound for every 19 pounds paid in taxes. In the

      4 min read

    • Article

      A British Trader Who Caused A 'Flash Crash' That Sent Stock Market Into Dive 10 Years Ago Avoids More Prison Time At Chicago Sentencing. 'I Could Never Survive That.'

      Jan 29, 2020

      CHICAGO - Ten years ago, trading futures from his parents' suburban London home, Navinder Sarao shook up the investment world when his computer program set off the "flash crash," causing the stock market to temporarily lose a trillion dollars in a ma

      3 min read

    • Article

      How to Profit From ETFs

      Jul 29, 2021

      Exchange-traded funds have never been hotter. Investors are pouring a record amount of money into ETFs, which hold baskets of securities like mutual funds do but trade like stocks. “It’s just explosive growth,” says Armando Senra, head of iShares Ame

      8 min read

    • Article

      How Do We Protect the Next Generation from Blowing Our Money?

      Aug 20, 2020

      Can you even imagine a billion dollars? If you earn $45,000 a year, it would take you 22,000 years to amass such a fortune. Well, now imagine $1 trillion. That’s 1,000 billion. One trillion divided evenly among the U.S. population would mean that eve

      3 min read

    • Article

      Timely Strategies to Protect Your Portfolio

      Oct 3, 2018

      "Set it and forget it" has been an elegantly simple--and lucrative--investment plan for the past nine years. The U.S. economy has rolled along, the stock market has soared, and interest rates, though rising since 2015, remain historically low. Just s

      10 min read

    • Article

      5 Ways to Increase Your After-Tax Spendable Income - and Legacy

      May 16, 2019

      Over dinner with friends a few nights back, they expressed concern about how the recent tax law changes increased their federal income taxes. New rules limit the amount of property and state income taxes that can be deducted -- and they live in a hig

      5 min read

    • Article

      When It Makes Sense to Buy the Dip

      Jan 3, 2019

      Around the beginning of 2018, the volatility of the stock market suddenly picked up. It was a worrying development for most investors, who prefer a smooth ride to a turbulent one. But volatility is a necessary condition if you want to deploy a strate

      5 min read

    • Article

      Are You Gambling or Investing? Here’s How to Tell

      Mar 2, 2021

      Investing in the stock market over many decades offers most people an incredible opportunity to build wealth. Does that surprise you? If so, you’re not alone. Over the course of my career as a financial planner, I’ve found that many people look at th

      4 min read

    • Article

      Want to Pay 0% in Taxes? Here’s How

      Aug 23, 2021

      One of the greatest expenses business owners and retirees alike face is income taxes. That’s why a forward-thinking tax planner is so valuable. They can leverage the Internal Revenue Code (IRC) to lower your taxes and help you build wealth. However,

      6 min read

    • Article

      How to Avoid Financial Panic When a Recession Threatens

      Aug 30, 2022

      It’s OK to worry about a potential recession. The unknown is scary. But, don’t let those emotions lead you into financial panic. You are not the only one feeling anxious – more Americans are worried about a looming recession than in years. Two-thirds

      4 min read

    • Article

      What I Learned from Losing $200 Million: The 2008 financial crisis taught me about the illusion of control, and how to give it up.

      Dec 24, 2015

      I’d lost almost $200 million in October. November wasn’t looking any better. It was 2008, after the Lehman Brothers bankruptcy. Markets were in turmoil. Banks were failing left and right. I worked at a major investment bank, and while I didn’t think

      15 min read

    • Article

      Trapped by Capital Gains? Opportunity Zone Funds Provide a Way Out

      Nov 29, 2019

      It's tough to think of a highly appreciated asset as the problem child in a portfolio. The goal is to choose investments that will flourish, after all. And those strong performers are typically the ones you love best and hold onto the longest. But t

      2 min read

    • Article

      Commission-Free Trades: A Bad Deal for Investors

      Oct 11, 2019

      Commissions on stocks and exchange-traded funds (ETFs) now come to a big fat zero if you use one of the four biggest online brokerages. On Oct. 1, Charles Schwab (SCHW) announced commission-free trading on stocks, ETFs and options trades. Online-brok

      3 min read

    Related categories

    Reviews for The Market Calls

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      The Market Calls - Edward Francis Doherty

      © Copyright 2013 Edward Francis Doherty.

      All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the written prior permission of the author.

      ISBN: 978-1-4669-9469-0 (sc)

      ISBN: 978-1-4669-9468-3 (e)

      Trafford rev. 06/03/2013

      7-Copyright-Trafford_Logo.ai   www.trafford.com

      North America & international

      toll-free: 1 888 232 4444 (USA & Canada)

      phone: 250 383 6864 ♦ fax: 812 355 4082

      Contents

      Chapter 1  Equity Call Options 101

      Chapter 2  Picking the Right Stock

      Chapter 3  Actual Trades

      Chapter 4  Opening an Online Account

      Chapter 5  Market Strategies—Making Your Money Grow

      Chapter 6  Bringing it All Together

      Appendix A  Does the Option Fit?

      Appendix B  Power of Compounding

      Writing Covered Calls

      Introduction

      I have heard it said more than once in my lifetime Enjoy everything you do in life, because if you do not it isn’t worth doing. Read this book with confidence and good intentions and you will reap enjoyment in the application.

      It is not my intent with this book to create a 100% complete and accurate manuscript for all. My intent in writing this book is to communicate with those who are both ambitious and young in spirit but are most of all patient. I have formatted this book especially for those who want to enjoy life and have fun with the Market. It is not for technical gurus or market analysts. It is for those who want an enjoyable, easy and simplistic magic carpet ride.

      I believe it is the journey that is the prize, not the destination.

      The application of this technique should bring substantial income to most—a rewarding amount of capital with a moderate amount of effort.

      The Strategy proposed is based on reinvesting your profit and compounding the value of your investment without requiring huge amounts of money. Call your Granny right away and get the investment dollars. I’ll wait.

      Welcome to Covered Call Writing.

      Covered call writing (selling) is a very simple method and is amazingly rewarding. What follows is a clear and concise description and examples of the technique of Covered Calls with very little emphasis on market jargon and with very few detours.

      The soundness of the Covered Call process has been expounded over the years—it is a tried and true method of investing with one of the highest success rates. Whatever your background, the material presented is valuable in growing your portfolio.

      Compounding, in the sense it is used here is simply reinvesting the profits and making money on the new sum. If you invest $1000 and get a 6% profit you then have $1060. If you reinvest the entire amount and get a 6% profit you now have $1,123.60. You can see how more quickly the pot can grow by reinvesting.

      Consider an initial investment of $2000. If you made as little as 2% every month and reinvested that amount for twenty years you would end up with $227,000 or approximately 100 times your initial investment.

      Here is your reaction!!

      What? I’m no dummy. That is over 24% a year. Are you nuts?

      Here is my response. Yes I am. Nuts about Covered Calls and just for that I am not going to sell you this book!

      Ok! You twisted my arm. You can buy the book as long as you own a computer.

      What? You don’t have a computer? Run right out and get one. I’ll wait.

      So Granny gives you a few grand that she can spare and you can have fun with the rewards coming in at a later time. Granny won’t care. Don’t put any more money into the pot—just cover the calls and have some fun. That is the essence of patience!

      If you want more, and I can feel that you will, take a look now at the compounding example in Appendix B. Appendix B contains a print-out of a Microsoft Excel program that allows you to compute your compounded earnings for any reasonable monthly percentage. The example shows the results of compounding a gain of 3.5% a month.

      With an investment of $500 and a monthly profit of 3.5% you will net approximately $1,860,860.00 in twenty years. You will also net a nice tax problem—get it?—a NICE tax problem.

      This book is about developing those skills with tried and true methods of application and using available online trading companies such as Ameritrade, E-Trade, Scottrade etc.

      Open an Account now!. Go to Chapter 4 and move on the Market. All you need is an nitial amount to establish an account—usually a few hundred dollars. While you read the rest of this book you will be able to go into your account and experience some of the information offered here.

      Get in and get out of the Market. You do not want to own stock forever, and you won’t be at the mercy of the Market whims. Rely on the concept of accumulating cash, acquiring capital and utilizing the art of compounding to set the pace for your future!

      Money Baby! The idea is to accumulate money and enjoy spending it. That is what it is for! You do like money—right? Money is my friend so treat it right!

      The good part is that you do not have to spend

      Enjoying the preview?
      Page 1 of 1