Genre: Instruction

Four-step guide to investing in shares : 1 ) Keep track of your shares . Make sure no major event has occurred that may affect the fundamentals of the company . Usually you may not bother about the fundamentals of the company . Usually you may not bother about the fundamentals while choosing a derivatives strategy . But never do a covered call on a fundamentally unsound company . 2 ) Avoid volatile shares . Opt for shares that rise gradually or move in a range . 3 ) At the end of any month , sell only the near-month options and not the mid-month ones . For example , at the end of July one should sell the August-maturity call option and not the September-maturity one . It can be mathematically proved , and also been seen that one usually makes more money this way . 4 ) Leave room for the share price : selection of strike price must depend on the view of the share price , and not on the yield by selling the option . The best-sold options are those that do n't get exercised against you-not those that give you higher upfront fee .