A Covered Call Calculator To Increase Your Returns

A covered call calculator (CCC) is designed to help conservative investors determine when they should roll their position. There are many things that must be considered prior to the time a roll is made. By utilizing this tool, better decisions can be made in less time.

Optimizing potential returns in a flexible market can be difficult. Deciding when to roll requires many considerations. Things such as time premium remaining, earning release dates, bid/ask spreads, and ex-dividend dates can all impact potential returns. By utilizing a tool such as CCC, the information needed to make the most beneficial decisions is at hand.

Although there are many options on the market today, the best CCC should include all variables that impact potential returns. When using a calculator that includes automatic updates in pricing, ex-dividend dates, and integrated earnings release dates, a significant amount of time can be saved. Not only will it keep investors out of trouble by ensuring they are kept aware of important dates, but will also optimize the time invested.

The CCC takes the option premium return and potential capital gain and determines a sum. This gives a total potential return that is then divided by current stock prices. When the market price is subtracted from the strike price, the potential capital gain can be determined. The amount is multiplied by 365 and divided again until the option expires. This makes it easy to tell whether the move will be profitable.

For years these calculations have been done by hand and have required investing a considerable amount of time. The CCC is designed to accomplish the same goal within minutes. It should be remembered that it is a tool that is not designed to give advice or quotes. However, it does allow a quick comparison of options and potential outcomes.

One of the key features that should be included is a marketing tutorial. New tools such as this, are most useful when individuals learn how to utilize them to their maximum potential. By learning how to work the system well, it can increase returns. This includes while considering rolling trades which requires investors be well-versed on the variables that impact outcomes.

The covered call calculator is designed to help investors manage their assets. There are many times when it is wise to make a move and determining when can be less confusing with this tool. By researching alternatives, the right CCC can be found.

To check out Born To Sell’s website on covered call investing, click here. In the money covered calls are popular with income-oriented investors because of the extra downside protection they provide. See https://www.borntosell.com/covered-call-blog/in-the-money-covered-calls/

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