For many experienced cover call writers, the knowledge gleaned from the option chain has become second nature and a source of information for our lucrative returns.
The first time I looked at an option chain it reminded me of the first examination I took in Organic Chemistry….I thought I was prepared for it but boy was I wrong! However, like most challenges (except perhaps organic chemistry) these hurdles can be overcome by simply doing your due-diligence and via repetition. These lists can be found through your online discount brokerage or through various free websites such as: For each underlying security, the option chain lists the various strike prices, option premiums, expiration dates and whether it is a call or put option. This is a list that quotes option prices for a given security. So how much cash can we generate selling options on the stocks that have passed our fundamental and technical screens? The answer lies in the option chain.
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