Deep In The Money Covered Calls
Deep in the money covered calls are used by investors to generate recurring monthly income. Due to their relative safety, they are one of the most popular kinds of covered calls.
What does "deep in the money" mean?
"Moneyness" refers to the relationship between the strike price of the call option and the stock's current price. If the strike price is at least a couple of strikes in the money (i.e. below the current stock price) then it is considered "deep in the money".
Deep in the money covered calls have built in downside protection because of the option's intrinsic value. The stock could drop after you've done a buy-write and you could still make money on the position. All you need is for the stock to stay above the strike price by expiration day and you will realize the full profit on the trade.
Born To Sell's Search feature lets you find deep in the money opportunities that match your personalized investment criteria. It's super easy to use, with visual sliders to set filter values.
Here's a video that demonstrates how easy it is (turn your sound on and this will be more meaningful):
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Born To Sell is dedicated to having the best covered call screener available. In addition the screener, we have several portfolio management tools designed to help you maximize your monthly income.
