Some investors are being encouraged to implement covered call strategies to boost their dividend yields. While this does work for some, an investor implementing this strategy should be aware of the substantial risks this strategy comes with - namely, virtually unlimited potential losses and limited potential gains. Read on to see how this strategy works and why you may want to take a pass on it in the future.
Read MoreLearn the basics about option trading. This post goes through what call and put options are, and what it means to be in the money, at the money, and out of the money. In addition, learn about the most common risk reduction strategy, the protective put option.
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