Using Sector Rotation to Scan for Short Put Breakouts | Covered Calls & Short Puts

Trading Covered Calls & Short Puts | Michael Fairbourn | 8-5-24

Within this presentation, we initially reviewed today's strength in the volatility index (VIX) and compared it to historical levels. Next, we discussed the impact that high implied volatility can have on option pricing and connected a group of stocks in defensive sectors. Lastly, we placed a couple of example short put trades in the thinkorswim paperMoney platform, discussing delta, theta, implied volatility and open interest characteristics.

Looking for income, but frustrated by low dividend offerings? Your education coach will discuss how and when stock investors might employ covered calls in their income portfolio. Expect a balanced education on the returns and risks of this popular strategy, and on the tools that can potentially help you implement it.
0823-3902

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

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Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.

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