The Covered Call Trading Setup (Strategy)
Below you'll find full details on the semi-bullish Covered Call setup/strategy. At OptionAutomator we use the terminology "Options Setup" vs. "Option Strategy" as you may also see elsewhere. Why the change in terminology? We believe that an options strategy is more than just a selection of combinations of puts and calls.
This is certainly a great setup for traders who are semi-bullish on a particular stock. Also, it's great for those looking to have time decay and potential implied volatility expansion work on their side. This is one of the safest strategies to trade for beginners, who are just transitioning from stock to options trading.
Next, let's take a look at the Covered Call Setup Strategy.