- Dividend University
- DIV 202
Options for Income Investors
Many of today's highest yielding funds are really options strategies. This course teaches options from the beginning: what calls and puts are, what drives an option's price, and how covered calls and cash-secured puts turn shares and cash into extra income, with every trade worked through in dollars.
- Explain calls and puts and what buyers and sellers of each are agreeing to
- Describe what makes an option expensive or cheap
- Walk through a covered call trade from sale to expiration or assignment
- Explain cash-secured puts and how the wheel strategy joins the two
Syllabus
- 110 min
What Is an Option?
Calls and puts explained from zero, with nothing but a contract and a handshake.
- 210 min
How Options Are Priced
Intrinsic value, time and volatility: the three ingredients in every option premium.
- 311 min
Covered Calls Explained
Selling someone the right to buy your shares, and getting paid for it up front.
- 411 min
A Covered Call From Start to Finish
One real looking trade on 100 shares, followed from the order ticket to expiration.
- 510 min
Cash-Secured Puts
Getting paid to wait for a lower price on a stock you already want to own.
- 610 min
The Wheel Strategy for Dividend Investors
Puts until you own the shares, calls until they are sold, dividends in between.