If you are a trader in the stock market and looking to learn new techniques in the options and futures or derivatives market then we have articulated the perfect article to read and learn about the Poor Man’s covered call strategy and find the best stocks for Poor man’s covered call strategy.
So are you interested in getting acquainted with the strategy involved around Poor man’s covered call and also getting the list of best stock for implementation of Poor man’s covered call?
What is the Poor Man’s Covered Call?
Since our readers comprise both experienced traders and newcomers we would first like to help our readers to know more about the covered call and poor man’s covered calls.
To start with a covered call is one of the best strategies to get better returns from your investment, so what is a covered call? It is a strategy in which one owns 100 stocks while you would be selling OTM call options to make money.
Now we move to the strategy called Poor man’s Covered Call which is a variation of the original covered call.
It involves a long deep In the Money long term call and a short Out of Money call option.
The main advantage which makes a Poor Man’s covered call best suited for an option trader is the fact that it allows high profit earning even at low capital investment.
Best 10 stocks: Top picks For Poor Man’s Covered Call Strategy
So how do we find the best stocks list for implementing Poor man’s covered call strategy, the way forward is to look for blue chip stocks which are good for long term investment but are considerably undervalued for some reason and have a high upside potential due to a strong fundamental of the company’s stock?
The underpriced stock allows one to reduce the buying capacity required to buy stocks on which you wish to implement Poor man’s covered call.
- Oracle (NYSE: ORCL) :
- Pfizer Inc. (NYSE: PFZR) :
- Advanced Micro Devices (NASDAQ: AMD) :
- Ford Motor Company (NYSE: F) :
- McDonald’s (MCD) :
- Conoco Phillips (NYSE: COP) :
- Verizon Communication (NYSE: VZ) :
- Caterpillar (CAT) :
- Nvidia (NASDAQ: NVDA) :
- United Health (UNH) :
Final Words…
We have completed our article on the best stock for Poor Man’s Covered Call Strategy and would now like to wrap up and conclude the learning we aimed to spread among our readers.
To be honest, if you are having a low-risk appetite low one must stay away from options and the future, but it doesn’t mean you must shy away from free knowledge and hence reading this article must be a great experience where you can freely learn about one of the best strategies to make money in derivative based trading. We hope that reading this article would have been a great experience and you enjoyed going through the content of this resource full article and would use the knowledge gained to make the best trades using the Poor Man’s Covered call strategy.
