New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing

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Wiley, May 1, 2003 - Business & Economics - 229 pages
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Does this sound like you?
  • You want the long-term returns from stocks but don't like the volatility.
  • You like the security of income from bonds and CDs, but the yields are too low.
  • You wish there was a sensible discipline you could follow that would provide the attractive returns offered by common stock yet with more consistency and less risk.

If so, then covered call writing may be the investment strategy you’ve been looking for.

You can achieve long-term returns commensurate with stock market returns but with lower volatility and less downside risk. The trick is to combine stocks with call options by "writing" a call against a stock you already own. Professional investment managers have been using this strategy for years, and recent developments have now made it easier for individual investors to employ it as well. Options experts Richard Lehman and Lawrence McMillan unlock the secrets of covered call writing in this groundbreaking, easy-to-understand guide.

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A good book on covered call writing. The author has methodically laid out the concepts as well as practical examples. After reading this book, one should be in good shape to leverage covered call writing in the real world

About the author (2003)

Richard Lehman has more than twenty–five years of experience applying his expertise in options strategies. He has held executive positions at E. F. Hutton, Thomson McKinnon Securities, First Saxonia Securities, and at the New York Stock Exchange. As an independent adviser, he now runs an online advisory service at CoveredWriter.com.

Lawrence G. McMillan is recognized as one of the foremost options trading experts. He has written three best–selling books on options, including Options as a Strategic Investment. As president of McMillan Analysis Corporation, he writes the "Daily Volume Alerts" and edits and publishes The Option Strategist, a derivative products newsletter covering equity, index, and futures options, as well as the online resource OptionStrategist.com.

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