Chapter 1 - Introduction
Defines what a covered call is and what the advantages and disadvantages of this strategy are.
Chapter 2 - Strategy Overview
In this chapter the benefits of the strategy and when to use a covered call are explained. Profit / loss and break-even point calculations are illustrated. This chapter also explains how time decay and changes in volatility effect a covered call position.
Chapter 3 - Strategy Specifics
This chapter is extremely comprehensive in giving a specific real life example of a covered call position and then dissecting each possible outcome, including the calculation of profit / loss and return on investment. This chapter also discusses the ramifications of dividend dates and why they must be taken into account.
Chapter 4 - Speculative vs. Defensive
For this chapter, the student will be exposed to the different risk vs. reward relationships of aggressive covered calls and defensive covered call positions. This chapter explains the differences between in-the-money, at-the-money, and out-of-the-money covered calls.
Chapter 5 - Alternatives
Introduces the student to the alternatives a covered call writer has in relation to different stock outcomes and differing timeframes until expiration.
Chapter 6 - Conclusion
The final chapter ties together all the material from the previous chapters. This chapter brushes over the benefits, disadvantages, and uses of a covered call position.
Chapter 7 - Review
Review of what you have learned.
OIC121P: Terminology & Mechanics
OIC122P: Covered Calls
OIC101W: The Options Basics Webcast