Books to consider reading about Covered Calls:
1. Covered Call Writing Demystified by Paul D. Kadavy
Paul has written a number of books on covered calls and related strategies. I have read this book and found it really good at explaining the covered call strategy in a well balanced approach. He uses a story to explain how a couple could achieve a 12% annual return in the face of slowing stock market returns and low interest rates using the covered call strategy. You can buy a copy directly from Paul's website and it is actually cheaper then the list price and there is no shipping charges.
Also, New Book by Paul: Boomer's Guidebook to Double-Digit Investment Income. Can see on Paul's website.
3. The Stock Option Income Generator -
How to Make Steady Profits by Renting your
Stocks by Harvey C. Friedentag.
This is really a good study guide for covered calls. It also does a good job in discussing the overall market. Options and much focus on covered calls represents about 50% of the book.
It list for $60.00 but you probably can get it much cheaper on Amazon or other online book stores.
One friend bought a used copy for $28.00.
4. Cashing in on Covered Calls by Alan Ellman
Alan has written a number of books on the covered calls strategy and has a very impressive website.
Alan provides considerable services (some free and some with fees) related to covered calls. His systems focus primarily on shorter calls, but he has developed a number of tools to help his members identify stocks that he feels are good for buy/writes, as well as other tools. His website will provide you with all the details and you can contact him directly if you have questions. I have found both Alan and Paul above as two of the better resources to learn more about the strategy.
5. New Insights on Covered Call Writing by Richard Lehman and Lawrence G. McMillan
Very Good book on the basics of covered call writing. I find the book easy to understand and I certainly learned much from reading it.
6. Getting Started in Options by Michael C. Thomsett (some sections on covered calls).
7. How to Make Money in Stocks by William J. O'Neil
Refer to IBD on left side of this page.
You can find these at many booksellers and Amazon.com
The Covered Calls Farm
Planting and Harvesting Covered Calls for Fun and Profit using a Farming Strategy
How do you educate yourself on the covered calls strategy?
This is definitely one of the critical success factors in any strategy and certainly for the CCS. Many of the books on the subject include sections on picking stock to use as your underlying holdings as well as solid learning on the overall concept. What are some of the sources you can find stocks and/or learn more about the strategy.
1. Investor's Business Daily (BD): This is my favorite to find stocks because of all the information the paper provides daily. I particularly like the weekend editions with the 100 top stocks based on the IBD's system. I like to review each of the 100 stocks and determine what type of covered call premiums are available. I have found many seeds for my farm in the IBD. You can get a paper or electronic edition. I like the paper because I can take it to breakfast and write all over it with ideas. However, I'm hopeful that IDB will have a new app for the new IPAD. If so, may get one and be able to use the electronic version. Whatever provides you fun in searching for seeds is worth the money in my viewpoint. Need to reward yourself, particularly if you are making money on your farm.
The founder of IBD is William J. O'Neil. He wrote a book several years ago with many updated versions called "How to Make Money In Stocks". I have read this book over many times and have found it very useful in helping me select good stocks. The IBD is based on many of the concepts in the book. While it is a general investment book I still believe it is very worthwhile in helping you in your investment education. You should be able to purchase at any bookstore, Amazon.com.
2. Online subscriptions to cover calls type websites. There are a number of covered calls related websites that identify what they consider as possible cover call opportunities. I don't recommend any of these personally but you can find them via a web search. Just type in covered calls and you will get a number of listings. Will take some digging but you should find them.
3. Your broker, Wall Street Journal and other sources will provide you seeds. It will take time to develop your own resources.
4. Various books on the subject: See the right side of this page.....
Paul D. Kadavy, Harvey C. Friedentag, Alan Ellman, Lawrence G. McMillan, and Michael C. Thomsett.
Please Note: This site does not recommend any specific investments. Please consult with a certified financial planner or brokerage to discuss specific investments. This is not a site for profit but an educational site for a specific call option strategy that is well documented but doesn't seem to be fully understood.
Updated: January 7, 2011
As I find more reference books and websites I will add them. Please note I have no financial interest in any thing referenced on this site but am providing to you to see if it is something that would help you learn more about the covered calls strategy.
Welcome to the Seed Store:
A place to find seeds for learning about the covered calls strategy:
Don't get overwhelmed with Data:
The books and references on the right are just a small example of what is available related to covered calls.
As you can see, it would be easy to get so much data you become overwhelmed by all the various approaches. Short term, long term, dividend stocks, etc. My advice is to take the time and read more then one of the books, check out the websites. Then set back and evaluate your own desires and willingness to dedicate the time to whatever strategy you decide to follow. Certainly, nothing wrong in adopting several of the approaches discussed by the experts.
It is important to develop your big rules and follow them for some period to validate they really work. Then fine tune your system.
It is a new world in investing then just a few years back. High speed computer trading, hedge funds, sales people everywhere trying to sell you their strategy. I have been invited to enough high priced steak dinners to gain 100 pounds. All are pushing their products.
My goal is not to overwhelm you with data but to provide enough balance you can become smart about the subject and hopefully develop your own strategy from the learning.