ChartBender "Risk Less, Make More" Stock Option Education Series

Investigating The Covered Call

ChartBender has just released the first module in a truly ground breaking, online option education series.  The first module in the series is entitled "Investigating The Covered Call" and delves into the component parts of risk and reward of this chronically misunderstood option position, providing an insight that most option traders have never achieved.

Can Trading Covered Calls Be Profitable?

Right out of the gates, ChartBender tackles the question all of us need answered if we are considering covered calls as a potential option trading strategy....  Can you profit with covered calls?  The answer to the question is "yes", but it goes beyond the simple affirmative response to an expansive investigation of the covered call position.

Why Is A Covered Call Equivalent To A Short Put?

We often talk about covered call trades carrying the same risk profile as that of a naked short put option.  What ChartBender does is explain why a covered call is equivalent to a naked short put. 

This explanation takes the viewer into a graphical presentation of option synthetics that shatters confusion, because you actually see the components of risk and reward before you.  Conceptualizing these complex concepts becomes as easy as child's play.

Your First Two Questions Answered Free!

These first two, threshold questions are answered in a free, 30 minute preview of the first module. 

Is The Covered Call A Hedged Stock Position?

There have been debates on option trading discussion boards about whether a covered call is a stock position hedged by a short call.  We discuss "downside" protection, which fosters the belief that the position is hedged.

In reality, the position is not hedged.  While many covered call traders are aware of this fact, they frequently are unable to explain why the position is not a hedged position.  ChartBender continues its dissection of this stock and option combination and reveals precisely why it is an un-hedged position.

Generating Income By Trading Covered Calls

Often, we talk about generating income by selling call options against stock.  While it is true that the sale of the short call option results in a cash credit, it really does not produce income.  ChartBender distinguishes between income investments and a covered call strategy.  The result is a clearer understanding of what is taking place in your account, enabling better decision making and trade management.

In addition, there is an exploration as to whether a covered call actually produces more income than selling the naked put option.  A through explanation replete with well designed graphical depictions reveals the illusion that many traders see when comparing a covered call trade with an equivalent short put.

Trading Covered Calls: Conservative or Risky?

The first step in answering this question is to define and understand what constitutes a conservative investment.  Once an operating definition for a conservative investment is established, then it is much easier to determine whether trading a covered call qualifies under that definition.

By acknowledging the risk of the covered call position, you then position yourself to make modifications to this basic option trading strategy to create something of extraordinary potential.

Improving The Positive Aspects of the Covered Call

Once the questions outlined above are answered, we are then in a position to analyze the true nature of the covered call and begin taking a look at how to modify the strategy.  By using ChartBender's proposed modified covered call, you are able to substantially reduce your risk.

The reduced risk covered call position, assuming a return equal to the traditional covered call, can have a profound impact upon profitability because the return on risk is substantially greater.  This larger return is a function of your reduced risk.

ChartBender reveals in graphic detail how a modification of the covered call trading strategy can substantially reduce your risk and, consequently, sky rocket your profitability!

The Complete ChartBender Module One Video Discounted!

This is the first of a series of modules in the ChartBender "Risk Less, Make More" series.  You can view the first 30 minutes of this initial module at no cost.  Once you do, you will want to see the full module and we can help you do that at a savings.

When you register, take two additional steps and you will receive a discount for being a member of TheOptionClub.com:

By doing so you will receive a substantial savings on the price of the module and you will let ChartBender know who referred you, which allows us to continue negotiating additional savings on your behalf.

The presentation put together by the folks at ChartBender is one of the most revealing, yet intuitive explanations of complex option theory that I have seen.  This initial module lays the foundation for a truly promising educational program.

Good trading!

ChartBender Resource Links

Watch Free 30 Minute Preview
This introduction breaks the covered call
trade down into its components anf risk
and reward, so you can visualize the position.

Watch The FULL Video!
Remember to identify TheOptionClub as
the referrer and use "THEOPTIONCLUB"
promo code to claim your discount.

ChartBender's Module 2 Is Here!
We have reviewed Part 2 of the Risk Less,
Make More series.