The Picture Of Profit - Intermediate Options Positions
...Continued From The Picture Of Profit - Basic Options Positions
Covered Call
When a novice options trader masters the long call position, his next stop is often the covered call position. However, the covered call is far from a beginners’ trade. In fact, a significant portion of the hedge fund, mutual fund and pension fund options volume in the U.S. consists of covered calls. The covered call position has two primary components:
- Long Underlying Position
- Short Call Position
Married Put
Although the term "married put" is relatively obscure, this position is actually quite common among novice and professional options traders. The married put position consists of two primary components:
- Long Underlying Position
- Long Put Position
Images courtesy of The Options Industry Council
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About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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