Review: Boost Investment Profit
Rating: 5 out of 5
Date: 04 13, 2014
A very educating and easy to understand book by Michael Young.  He explains how Covered Call options can be used to boost investment returns as well as minimizing the risk of price drops.  A Call option gives a buyer the right to buy shares at a given price or by a given time from the seller (writer) of the option.  The holder of the shares pays an option premium to the writer.  The benefits of using this strategy are that the option premium gives protection against a price fall, the writer receives the premium and has access to the money, and the writer of the covered call as well as the holder of the shares receives the dividends.  The disadvantage though is if the price goes up significantly the holder of the covered call will exercise the option and the writer misses out on potential profit.  Young gives a great illustration again.