Writing Covered Calls Allows You To Make Money 3 Ways

1) If the stock goes up to the exercise price and is called (bought), you make the difference between what you paid for the stock and what you received for the stock (the exercise price), PLUS the money you received for the option.

2) If the price of the stock stays below the exercise price, you will make the money you received for the option, PLUS you will retain the stock and you can then sell another option and increase you cash flow even more.

3) If the stock goes down less than the premium you received for the option, you will make the money you received for the option and you will have lowered the cost of your stock by the amount you received for the option. Compare this with if you had just purchased the stock and NOT written an option - there is only ONE way to make money - the price of the stock would have to go up and you have no down side protection.

The advantage of this software application is that the investor (you) only need to fill in the blanks to determine your annualized return based on the inputs you provide. You then have the opportunity to make the decision as to whether the return on your investment meets your requirements.