Willy's Wide World of Wealth

Covered Calls
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Your Key to Wealth?

I originally produced the following before I found my 'what works' methodology.  It turns out that a Covered Call strategy is still valid as it is a part of the overall 'what works' method i.e. selling something against what you own.  In some accounts without leverage such some 401Ks, a Covered Call Strategy may be all that is available. (This is the case for me!)
 
I think the study I did is still valid as is the decision tree contained in the Covered Call Calculator  (CCC), So I am leaving this part of the website unchanged and it is here:
 
Covered Calls are a great way to build wealth, if done correctly.  If done incorrectly, however, they can put a big dent in your portfolio.  I have spent years developing techniques that I use to manage my Covered Call Positions to give myself the best chance of making nice positive returns over time.

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Click here for more information on my Covered Call Method!

I use Technical Anaylsis Software to Screen for Stocks that are suitable for my way of trading Covered Calls.  This gives me a small list to look through at the beginning of the next trading cycle.  I pick the best candidates to actually trade.  My goal is to make the income from the sale of the Call and end up with NO stock position.  With my technique, this happens a little over half of the time, which is pretty good.  For those stocks that move either way up or way down after I've entered a trade, I need to manage the position until I get out with a profit.  I created a spreadsheet that will guide me through the possible steps of the trade with the desired way to manage it depending on the Stocks and/or Options price action.  Finally, I use a different spreadsheet to track the actual gains and losses from each trade and provide data for post trade analysis.