Covered-Call Writing for Income Generation
Have you bought options in the past only to watch their value slip to zero and finally expire worthless? Wouldn't you rather be a seller of options and earn that premium? With covered-call writing, you can. It is an investment strategy that is both profitable if market prices rally, yet still produces income even if prices languish or fall.

This video will describe the covered-call write strategy and explain when to use it. Using actual charts and prices, you'll see how a covered-call write is constructed and how to calculate the risk, break-even and profit potential of this appealing investment strategy.

Specifically, you'll learn:

  • How to construct a covered-write strategy.
  • When and why to use it and in what markets.
  • In-depth example using the E-mini S&P 500.
  • Comparison of covered-write with traditional 'buy and hold' strategy.
  • How to pick the strike price of the call option sold.
  • Tips on timing, execution and management of covered-write.

This video is presented by Rick Thachuk, President of World Link Futures, Inc. (see bio below) and made free of charge thanks to the sponsorship of Alaron's Futures Training Division (see below).

To access this free video, please complete the information at right.

Questions or Comments?

If you have any questions about the material presented in this video, or wish to speak with a futures specialist of Alaron's Futures Training Division, then please call 800.542.1022 or send an email.

To contact World Link Futures, please click here.

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THE RISK OF LOSS IN TRADING COMMODITY CONTRACTS CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. COMMODITY FUTURES AND OPTIONS TRADING IS NOT SUITABLE FOR EVERYONE.


About the Narrator

    Born and educated in Canada, Mr. Thachuk began his career in June 1988 at the Bank of Canada (Ottawa, Ontario), the nation's central bank responsible for setting national monetary policy and intervening in foreign exchange markets, and the Canadian counterpart of the Federal Reserve Board in the United States.

    Thereafter, he moved to New York City to become the Economist and Derivatives Market Strategist of FINEX, the financial instruments division of the New York Board of Trade - the oldest futures and options exchange in New York. He authored numerous trading and hedging guides on the Exchange's listed financial futures and options contracts including foreign currency products - especially the U.S. Dollar Index - and Treasury Note products.

    In the mid 1990's, Mr. Thachuk worked as a consultant to Euro Brokers, the nation's largest brokerage of over-the-counter emerging market debt instruments, where he designed and managed an arbitrage program with the newly listed EMDX futures contract which he himself had designed while at the New York Board of Trade. In August 1996, Mr. Thachuk founded World Link Futures, Inc. He has personally been trading futures and options for over 10 years.

    Mr. Thachuk has a Master of Arts in Economics received from the University of Western Ontario (1988) and an Honors Bachelor of Arts in Business Administration and Economics received from Brock University (1987) with specialization in International Finance.

About World Link Futures, Inc.


    World Link Futures, Inc. is a licensed educational Commodity Trading Advisor and has been teaching the beginning futures, options and forex trader since 1996.

    Over the years, it has developed a strong and reliable Internet presence, both because of its 10+ year history and because of the breadth and depth of the free educational material that it provides. World Link Futures is consistently ranked as the #1 futures trading site for the beginner among the major internet search engines.

    World Link Futures has achieved industry recognition from the popularity of its website and through its frequent writings for Futures Magazine, the magazine as well as the website, and other industry publications and websites. Among its clients and site visitors, the Company has earned a reputation of professionalism, competency and fairness. World Link Futures has been registered with the Commodity Futures Trading Commission since inception and has never had any disciplinary actions against it.

About Alaron's Futures Training Division


    Futurestraining.com, the official website of Alaron's Futures Training division, was developed so that all clients may have the tools, knowledge and experience of the seasoned futures trader.

    Clients of Alaron have the potential for longevity and success in trading, but many fall short due to a lack of what "knowledgeable traders" have termed "basic needs". We understand the idea of leveraging large contracts, with comparatively less capital, can be very alluring. Unfortunately leverage is a double edge sword, and clients should be prepared before jumping "head first" into futures trading. In response to this, clients of all skill levels will have a wealth of resources placed at their disposal.

    We at Alaron's Futures Training Division believe education and experience to be the cornerstones of success in trading, and we pledge to provide the tools and assistance necessary to achieve that goal.

    Alaron Trading Corporation is a Chicago-based Futures Commission Merchant with a highly diversified client base. Alaron is a clearing member of the Chicago Mercantile Exchange, the Chicago Board of Trade, New York Board of Trade, OneChicago and the Minneapolis Grain Exchange. Alaron is a member firm of Kansas City Board of Trade, the Climate Exchange and the Merchants' Exchange.

    We provide institutional, clearing, and introducing brokerage services along with managed, broker and self-directed retail trading accounts. Clients may trade online 24 hours a day on multiple high-speed trading platforms including AlarOnline, CQG Trader, J-Trader, Ninja Trader, Strategy Runner and TradeNavigator. All platforms offer direct-to-the market trading of E-Minis, Bonds and Notes, Liffe, Eurex, Simex and more. All services are available to all clients.

    Our Mission: Your trading success is Alaron's passion.