The Helpful Features of a Covered Call Screener

Investing in the financial markets can be very challenging even for veteran traders. Luckily, novice traders and investors who want to be successful in equities trading now have a better chance of doing so by subscribing to market data and information providers online. Financial websites provide highly useful information that can enable any trader to make better investing decisions. These websites not only keep track of prices of stocks and commodities but also provide useful premium services like covered call screeners. A covered calls service enables its subscribers to find the best options as defined by their trading strategy. This service can help them find contracts that are best suited to their portfolios.

Writing a call entails an investor agreeing to sell the rights of a stock he owns at a specific price, also called the strike price. At the end of the agreement, if the stock doesn’t hit the strike price, the investor gets to keep the premium he earned from selling the option and keeps the holdings. However, there are also other risks involved in this investment strategy. These risks can be properly managed with the help of premium screeners that allow users to search for calls according to their specific criteria.

With the help of the covered call screener of Barchart, traders now have an easier time finding information that will help them in their trading strategies. This service is a valuable tool for equity option traders. This screener has key features that include the ability to search for calls of a given equity symbol. This service also allows its users to calculate profitability by estimating values if the stock stays the same or prices go down. Users can also filter data by market capitalization and exchange or sort by moneyness. This data can also be filtered based on earnings reports so that they can hedge against sliding of prices and by stocks that may earn high dividends so they can add dividend income to their profits. Subscribers can also find calls on the technical lists of Barchart like top traded stocks, new highs and lows, volume leaders and stocks that have the highest opinion rankings amongst users. Covered calls information should increase the likelihood that a trader subscribing to Barchart.com will make wise investment decisions that will earn them extra income. Go to barchart.com to subscribe today.

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Write and Find Covered Calls with a Premium Screener

The volatility of stock prices has prompted many stockholders to look for ways to protect themselves against drastic changes in stock prices. The best protection available involves covered calls. This investment strategy is typically utilized by an investor that wants to protect himself from a decrease in the price of a stock in the future while earning additional income. The investor will then enter into a covered call contract. More and more stockholders, as well as equity option traders, are opting for this strategy because of its intrinsic benefits. It has also prompted many investors to find covered stocks to add to their portfolios. Using a call screener, a stockholder or trader can find the best call depending on their investment strategy

Due to the volume of stocks available in call contracts, it was previously impossible for any investor to sort through all of the data. Luckily, call screeners are available for simplify the process. Barchart, a leading provider of market data and information, offers a call screener that is affordable and convenient. Barchart’s call screener enables users to find the best calls depending on their trading style and then choose contracts that are ideal for their portfolios. With this tool, they can conveniently sell or buy call options while enhancing their profitability in the process.

The Barchart call screener includes key features like a search function that enables its users to find calls for a particular equity symbol, including monthly and weekly options. It also shows profitability calculations like returns if the price of the stock remains the same, protection against a drop in the price of stock, and yearly returns if the price remains flat. Users can filter the data by market capitalization and exchange, as well as by earnings reports. They can filter the calls by stocks that are earning the highest dividends, so they can take into consideration the dividend income when calculating the potential income of the call.

Users of the call screener won’t have to worry about the accuracy or reliability of the data provided by Barchart, which has more than eight decades experience providing up-to-date and relevant information about the financial markets. Barchart is trusted by millions of stock traders and investors around the world. Its call screener is just one of the many tools and programs available to members. Finding covered calls is much more convenient with the Barchart covered call screener. Sign up at barchart.com.

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What are the Advantages of Covered Call Writing?

Traders and stockholders have found different ways to maximize their earning potential while minimizing their risks. One of the more popular methods that traders utilize in the equity markets is covered call writing. Through covered calls, stockholders write a call option for a shares of stocks at an agreed price (also referred to as the strike price). The option buyer can exercise the option once the option date expires. Typically, option buyers do so when the price of the stock has become greater than the strike price.

Stockholders should have at least 100 shares of stocks to be able to write a call option.

In exchange for writing a call option, the call writer receives a premium. The beauty of this arrangement is that the call writer can keep the premium and the stock at the same time if the option buyer does not exercise the call option once the expiration date sets in. According to experts, selling stock options can earn a trader up to 60% or more a year. It is a normal practice for stockholders and traders to successively write call options on stocks, especially if they think that the value of the stocks will not increase significantly in the future.

Aside from the extra income that traders receive from call options, they are also protected against losses in case the value of the stocks they own dip in the future. By entering into a call option, a stockholder can at least earn extra profit just in case the value of the stocks he or she owns slides in the future.

For instance, a stockholder writes an option for shares of stock ABC at a strike price of $40 per share. The call option expires after two months, with the stockholder earning around $5 per share from the call option. However, the stocks of ABC slide down to $30 per share, which means that the stockholder loses income opportunity. The stockholder can still look at the brighter side since he was able to earn some money by entering into a call option agreement. Likewise, the stockholder retains possession of the stocks because the call buyer won’t proceed with the call option given that the value of the stock has decreased.

Covered calls are considered to be low risk investment strategies yet like all other investment moves, it still has its risks. Stockholders and traders must study their options first before writing a covered call.  A call screener can help investors with their strategies. Visit barchart.com to learn more.

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