Benefits Of Using A Covered Call Option Screener
Starting to invest in stocks is a little difficult because of lack of insight regarding stocks and financial investment makes everything seem too complicated. There will be instances when profit will come in and there will be times when losses are inevitable.
Investing will really be a test of patience and drive. One of the few things that could help make investing worthwhile is covered calls options because it will reduce the fluctuation between earning and loosing on your investments. Creating a complete and diversified portfolio with exposure to many different types of stocks is also essential. Writing covered calls is, therefore, a strategy you must consider, if you are serious about making money from the stock market.
You must also keep in mind that improving your skills is necessary in order to locate the best covered call opportunities in the market. Searching manually for the best covered call opportunities is a very difficult, if not impossible task. After all, there are over 200,000+ covered call candidates to choose from! You will lose hours every day and the results won't be satisfactory.
Using a covered call option screener is a must for any serious investor. It can find for you the best opportunities in a matter of seconds. But even so, you must know how to correctly use it, and what to search for. You should go for situations where the stock price is over $5, the P/E ratio under 20, no earnings before expiration, "in the money" over 5% and open interest to be over 2,000. Using these values, you will see that from 200,000+ call candidates, it will filter down to a far more manageable number.
With over 200,000 covered call candidates on the market, it really is a handful to search for the top covered call opportunities so do not give a second thought in using a call option screener because it can do the search for you in a matter of seconds. The best screeners are those that are very intuitive and easy to use. Ideally, they should provide you with the top 40 stocks and at the same time also allow for enough flexibility to give you for a complete personal search accordingly to your needs. You can chose the minimum stock price, the maximum P/E ratio, the minimum number of open contracts, the monthly expiration date you want, and many more. Tools like these make the life of every investor easier.
About the Author
To know more about writing covered calls and to get access to the best covered call screener, please visit the website- https://www.borntosell.com/
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