Learn How to Use a Covered Call in Binary Options Trading Strategy
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Learn How to Use a Covered Call in Binary Options Trading Strategy
May 6, 2012A covered call is one of various binary options trading strategies where online traders can hold a long position on an underlying asset as well as a call option on the same asset trying to produce more income on that specific asset. This strategy, (also referred to as a buy-write) is often used when investors have a short term or neutral outlook on the underlying asset and therefore hold the asset long while at the same time take a short position on the option to produce higher profit margins from the option premium. Now let’s say that for all intents and purposes …
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