Weekly Option – Covered Calls
The weekly option covered call trading system is a trading strategy where you own shares of a particular stock and then begin to sell options against your stock position.
While you are in the trade, if the stock position that you have winds up ‘in the money’ on expiration day, the stock that you own will be ‘called away from you’ which means that you will be forced to sell the stock at the exact strike price where you sold the option.
This weekly options trading strategy allows you to benefit in several different ways. The first way is that you can make money from the weekly option that you sold. If the stock never reaches that strike price where you sold the option at, you can keep the money you recieved from selling that option.
The other way you can make money from this weekly options play is when the stock increases in value while you have the trade on and it moves higher than the strike where you sold the option. Even though you will have the stock called away, you will have made money on the increase in the stock value as well as the credit you recieved when you sold the initial option.
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