Generate Monthly Cash Flow By Selling Options

Covered Calls Made Easy Generate Monthly Cash Flow by Selling Options Written & Published By: Matthew R. Kratter http://www.trader.university

Copyright © 2015 by Little Cash Machines LLC All rights reserved. No part of this book may be reproduced in any form without permission in writing from the author [email protected]. Reviewers may quote brief passages in reviews.

Disclaimer While the author has used his best efforts in preparing this book, he makes no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties or merchantability or fitness for a particular purpose. The advice and strategies contained herein may not be suitable for your situation. You should consult with a legal, financial, tax, or other professional where appropriate. Neither the publisher nor the author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. This book is for educational purposes only. The views expressed are those of the author alone, and should not be taken as expert instruction or commands. The reader is responsible for his or her own actions. Adherence to all applicable laws and regulations, including international, federal, state, and local laws governing professional licensing, business practices, advertising, and all other aspects of doing business in the US, Canada, or any other jurisdiction is the sole responsibility of the purchaser or reader. Neither the author nor the publisher assumes any responsibility or liability whatsoever on the behalf of the purchaser or reader of these materials. Any perceived slight of any individual or organization is purely unintentional. Past performance is not necessarily indicative of future performance. Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. Nor will it likely ever be. No representation or implication is being made that using the methodologies or systems or the information contained within this book will generate profits or ensure freedom from losses. The information contained in this book is for educational purposes only and should NOT be taken as investment advice. Examples presented here are not solicitations to buy or sell. The author, publisher, and all affiliates assume no responsibility for your trading results. There is a high risk in trading. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS THE LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Table of Contents

Your Free Gift Chapter 1: The Power of Covered Calls Chapter 2: A Step-by-Step Guide to Selling Covered Calls Chapter 3: Three Possible Outcomes of a Covered Call Trade Chapter 4: What Happens to Covered Calls During a Stock Market Crash? Chapter 5: How to Find the Best Candidates for Covered Calls Chapter 6: Should You Sell Puts Instead? Chapter 7: How to Get Started Today Thank You Free Bonus Chapter

Your Free Gift Thanks for purchasing my book! As a way of showing my appreciation, I’ve created a FREE BONUS CHAPTER for you. After my book’s initial publication, many of my readers asked for ways to trade covered calls in a small account ($5,000 or less capital). Other readers have asked for strategies to get even higher returns with covered calls. In the free bonus chapter, I will give you a step-by-step guide to trading covered calls in a small account, while turbo-charging returns. >>>Tap Here to Grab Your Free Bonus Chapter<<<

Chapter 1: The Power of Covered Calls back to top I have to admit it -- I'm a covered calls junkie. I've been selling covered calls since 1996, and have made hundreds of thousands of dollars in the process. After all these years, I'm still amazed that someone is willing to pay me for the chance to take my stock off my hands for a profit. There is a common misconception that trading options is inherently more risky than trading stocks. It's easy to see where this misconception comes from: many people do indeed trade options in a reckless manner. Options can be used to magnify returns on the upside, and the downside. In inexperienced or greedy hands, this can be a recipe for disaster. Most of these reckless traders are buying options. The strategy that you are about to learn involves selling options. Here's how it works: You buy a stock, and then enter into a contract ("you sell some call options"). This contract says that you will get paid some cash today (the "premium"), in exchange for giving up the stock's potential upside past a certain point. Maybe you buy 100 shares of stock XYZ at 20.00 and agree to give up all potential upside past 21.00 ("the strike price"). In exchange, you get paid $1.00 per share (or $100, since you own 100 shares). Let's review what just happened: you bought a stock at 20.00 and immediately got paid 1.00. In effect, you have only paid 19.00 for the stock. If the stock goes to zero the next day, you lose 19.00 (or $1,900 since you own 100 shares). On the other hand, if you had bought the stock without entering into the contract, and the stock went to zero the next day, you would have lost 20.00 (or $2,000 since you own 100 shares). Hopefully this shows how covered calls can actually decrease the risk of a long stock position. So what are the risks associated with covered calls? Risk #1: Lost upside Risk #2: See risk #1 The most risky thing about covered calls is that you miss out on a stock's appreciation past a certain point. If you sold covered calls on Apple (AAPL) back when it was $100 (pre-split) and then it ran up past $800, you left a pretty big chunk of change on the table. But what if instead you held General Electric (GE) in your account over the past 2 years? (I'm writing this in May 2015.) You have watched the stock bounce between 23 and 28, pretty much going nowhere. You've been paid a small dividend while you waited, but have otherwise been

treading water. In this case, selling covered calls on the position would have generated significantly higher returns. The moral? Don't apply the covered calls strategy to stocks that you think will appreciate sharply in the near future. Covered calls work best on stocks that are trading sideways, or slightly up. If you own a stock in your long-term portfolio, and you don't think it is going anywhere over the short term, covered calls are an excellent strategy to generate some monthly income while you wait. Or, if you are sitting in cash, scared to get back in the stock market, but unwilling to lock up your money in a CD that pays next to nothing, covered calls are a good way to slowly ease back into the market, and generate some income right away. Even if you've never traded options before, this book will quickly bring you up to speed. In the pages that follow, you will learn: • How to understand options terminology like calls, strike, expiration, etc. • The crucial difference between "naked calls" and "covered calls" • How to find stocks that are the best candidates for covered calls • How to pick the best strike price and expiration date for your calls • How to sell calls against stocks that you already own, to generate extra income • The mechanics of cash-secured puts It's time to get started to see how this powerful strategy can work for you.

Chapter 2: A Step-by-Step Guide to Selling Covered Calls back to top First, let's go over some basic terminology. A "call option" (or just a "call") is a contract that gives you the right to buy a stock at a certain price, over a certain period of time, until the option expires. If you own a call option ("are long a call"), you have the right to buy the stock, but you don't have to buy the stock. So, for example, let's look at a KO June 41.00 call. "KO" is simply the ticker of the underlying stock, in this case, Coke ("The Coca-Cola Company"). "June" is what is called the option's "expiration date." This is the month when the options contract expires. Expiration usually occurs at the end of the day on the 3rd Friday of the month, or 19 June 2015 in this case. "41.00" is the "strike price": this is the price at which the owner of the call option has the right to purchase the stock (or "call it away" from its owner, hence the name "call"). If you buy a call ("if you are long a call"), you are betting that the stock will move up in price. If you sell a call ("if you are short a call"), you are betting that the stock will stay roughly where it is, or move down in price. If you sell a call, and the underlying stock moves up a lot in price, you can lose a lot of money, and end up having to buy back the call at a higher price. If you are just short a call, it is called a "naked call." It is a naked call because you are "exposed" to sharp up moves in the stock. Covered calls are much safer. When trading covered calls, we buy a stock and then sell an equivalent amount of call options at a strike price that is just above where we bought the stock. If the stock moves up sharply, you will lose money on the short call position, but you will make back an equal amount on the long stock position. In other words, you are "covered" and don't have the huge risk of loss that you do with naked calls. There are times when it can be advantageous to sell naked calls, but that is an advanced strategy, and the subject for another book. For now, you should stick to covered calls. Let's look at a real example to make this clear. As I'm writing this, Coke (KO) is trading at $40.94 per share. I like Coke at this price, and so I decide to sell covered calls on it. To make the numbers easy, let's assume that I have enough money to buy 1,000 shares of Coke. If you are trading a small account ($5,000 or less), there is a special way of doing covered calls

that you can learn about here: >>>Tap Here to Grab Your Free Bonus Chapter<<< So if I have the capital, I buy 1,000 shares at 40.94. This costs me $40,940, plus a $4.95 commission (if you're using TradeKing.com), for a grand total of $40,944.95. Now I immediately decide to sell calls against this stock position. To get an options quote, I navigate to Yahoo Finance, enter the symbol KO, then click on "Options" in the left-hand menu. This link should take you there: http://finance.yahoo.com/q/op?s=KO+Options Next, I go to the drop-down menu for the date, and select June 12, 2015, which is about 30 days from today. I choose the strike price that is just above my purchase price: this strike price is 41.00. I've already chosen an expiration date from the drop-down: June 12, 2015. This is the date that the contract ends ("expires"). Here's what it looks like on Yahoo Finance today. If you'd like to expand the image, just doubleclick on it:

I've circled the strike price ("41") as well as the bid price ("0.57"). The bid is the price that the market is willing to pay for a call option. Since I am selling calls, I should set my limit order to the bid price, if I would like my order to be filled right away. Each call option covers 100 shares of stock. So if I now own 1,000 shares of Coke, I need to sell 10 (1,000 divided by 100) call options. So, I sell 10 call options to the bid (use the order type "sell to open"), and my order is filled. If I used TradeKing.com, I was charged a commission of $4.95 base rate plus 10 contracts times $0.65 per contract, or $11.45. I sold 10 calls, and so my account was credited with 10 calls times

100 shares per call times 0.57 (the price at which I sold the calls), or $570. My net credit after the commission is $570.00 minus $11.45, or $558.55. I get to keep this $558.55 ("the premium") no matter what happens. I am still long the 1,000 shares of Coke that I bought. And I am "short" 10 call options in my account. I am "short" because I sold something that I didn't have. Don’t worry about this for now. As the price of the stock trades up, the shares of Coke will gain in value, while the short call position loses roughly an equal amount (more on this later). As the price of the stock trades down, the shares of Coke will lose value, while the short call position will make money. As we mentioned before, covered calls work best in a flat to slightly up market. In the next chapter, we will see why this is the case.

Chapter 3: Three Possible Outcomes of a Covered Call Trade back to top During the trade, you may observe an interesting phenomenon: After you first sell your KO calls, there will be a debit in your account that is roughly equal to the market value of your short call position. So in the example above, you will receive an account credit of $558.55 (cash collected from the premium after the commission is netted out) that is almost perfectly offset by the negative value of your short call position (negative $570.00). Over time, the value of your short call position will move around as the call options move around in price. So if Coke rallies, your call options may be re-priced from 0.57 to 1.00. If this happens, the new value of your short call position will be 10 times 100 times 1.00 equals a debit of $1,000, up from a debit of $570. Do not worry, if this happens! You are covered by the stock that you own: your position in the stock will also have increased by about 0.43 or $430. You do not need to adjust your position at all. One more thing to notice: if the stock stays in about the same place for a few days or weeks after you enter the trade, the value of your short call position debit may begin to shrink. So, for example, it may be $570.00 one day, then $525 a few days later. As you get closer to expiration, this debit will shrink even more quickly. This is caused by "time decay." As time passes, and you get closer to expiration, the option is worth less and less. For the buyer of the option, this can be quite nerve-racking. But you are the seller of the option, so you can be happy-- time decay is working in your favor every day. Time decay is the greatest in the last 30-60 days of an option's life, which is why we like to sell covered calls about 30-40 days out. Now let's fast forward to June 12, 2015, which is the expiration date for the call options that we have sold. There are 3 possible outcomes for this trade, and they all depend on where shares of Coke close on that Friday afternoon at expiration. Outcome #1: Coke closes above 41.00, which is the strike price of my options. In this case, my 1000 shares of Coke will be "called away" from me. They will be sold at 41.00, and the $41,000 cash less commission will show up in my account. I bought the stock at 40.94 and sold it at 41.00, so I made 0.06 on 1000 shares, or $60. Less a commission of $4.95 to buy the stock and $4.95 to sell the stock, this is a profit of $50.10 on my stock. Then there is also the profit on my call options: as mentioned before, we collected $558.55. So our total profit over 30 days is $558.55 plus $55.10, or $608.65. Under this outcome, we made $608.65 on capital of $40,940, for a return of 1.49% in a single month. If you can do this every month, you will make 17.88% every year from selling covered calls on Coke.

Over 12 months, you would also collect 1.32 in dividends per share, or another 3.22%. Add these together and you get an annual total return of 21.10% on a conservative blue-chip company like Coke! Now in practice, you probably won't be able to sell calls on a stock every month. But even if you can do it half of the time, you will still end up with a respectable return. Outcome #2: Coke closes exactly at 41.00 In this case, you still get to keep the stock. The call options will expire worthless. You still keep the $558.55 cash, and you can come back on Monday morning when the market opens and sell the July 2015 call options with a strike price of 41.00, to collect another $500 or so. In this case, the calls expire "at-the-money," which means that the stock closed exactly at the strike price. In most cases, no one has an incentive to call away your stock at 41.00, since they can buy the stock at 41.00 in the open market. The one exception to this rule is when the stock is set to go ex-dividend. In this case, the owner of the calls may call the stock away from you even at-the-money, so that he will own the stock by the cut-off point in time, and thus be able to collect a dividend payment from the company. Outcome #3: Coke closes below 41.00 In this case, you will also get to keep the stock. Again, the call options will expire worthless, and you will still keep the $558.55 cash, which you can now use to buy more shares of Coke, if you so choose. If Coke closes at or above 41.00, we make the most money. Remember that we collected 0.57 for the options (not counting commissions, which are small enough to ignore in the following calculation). This means that the stock can fall all the way from 40.94 (our purchase price) down to 40.37 (40.94-0.57) before we start to lose money. 40.37 is roughly our break-even point for the trade. We will also be paid 0.33 in dividends every quarter, thus lowering our break-even point by 0.33 for every 3 months that we hold the stock. Should we begin to worry if the stock falls below 40.37 before expiration? Absolutely not. If the stock has only fallen to 39.00 or 40.00, we will probably still be able to sell some more 41.00 calls and collect a decent premium. When our June 41.00 calls expire worthless (as they will as long as the stock is trading below 41.00 at expiration), we can sell some more 41.00 calls. In this case, it probably makes sense to sell the 41.00 calls two to four months out (so, August, September, or October) in order to collect enough premium to make it worth it. On the other hand, if you think that the stock will get back up near 41.00 in the next few days or weeks, it makes more sense to hold the stock and wait until it's closer to 41.00 to sell

more calls. The closer it is to 41.00, the more money you will collect from selling the 41.00 calls. In the next chapter, we will discuss what to do if the stock has fallen quite sharply, say from 40.94 down to 20.00.

Chapter 4: What Happens to Covered Calls During a Stock Market Crash? back to top Occasionally, you will sell covered calls on a stock, and the stock will decline sharply, either before or right after the calls expire. Let's continue with our example trade. What do I do if Coke drops 50 percent? That depends. First, it is important to remember that we are still better off than we would have been, if we had not sold the calls. Buy-and-hold investors in Coke will not have collected that $558 in cash upfront like we did, and they will still have watched their stock fall 50% If Coke has fallen 50% because we have entered a bear market and the whole stock market has fallen sharply, then we should continue to hold the stock. We can keep collecting the dividend, while we wait for the stock to get back to near 41.00, where we can once again begin selling covered calls on it. If the stock is at 20.00, more aggressive investors might want to sell covered calls with a strike price of 21.00 or 22.00, if they think that there is a good chance that Coke will not recover in the next few months. This is a risky strategy, though. If Coke rallies sharply, your shares will be called away at 21.00 or whatever strike price you have chosen. If Coke moves quickly from 20.00 to 25.00, you may wish that you had just held on to the stock without selling more covered calls. There is another possibility. If Coke has fallen 50%, not because of a general bear market, but because of company-specific problems (maybe the government decided to go after soft drinks the way it did with cigarettes), you may wish to sell the stock, take your loss, and move on. Wait to sell your stock until after the calls have expired, or you risk ending up with a naked short call position. If you have naked calls, you are at risk if the stock rallies sharply after you have sold your shares. If you do wish to sell your stock before expiration, you can always buy back your call options so that they will not become naked calls. If the stock has fallen from 41.00 to 20.00, the call options are probably worth only a few pennies each at most. In that case, it will be relatively inexpensive to buy them back. You will remember that when we entered this trade, we used the order "sell to open." To buy the call options back, you will want to use the order "buy to close," and then specify a limit price. If you want your trade to be executed quickly, you should buy from the “ask” (Click here for link to Yahoo page above.). Do not be deterred by bear markets. When stocks become more volatile, call option premiums increase sharply. In the meantime, because stock prices have fallen a lot, you are able to purchase many more shares with your spare cash. The net result is that any new capital deployed during bear markets will have a much higher return. During the 2008 financial crisis, I was able to sell

options on many stocks and get paid 6% or more for 30-day covered calls. On an annualized basis, this works out to a 72% return! In the next chapter, we will learn how to pick quality stocks for our covered call portfolio, so that we will be able to sleep at night-- even during a bear market.

Chapter 5: How to Find the Best Candidates for Covered Calls back to top There are many different ways to approach the decision of which stocks to use for covered calls. Let me give you one of my favorite and most conservative ways. Before you write covered calls on a stock, it must satisfy the following 5 requirements: 1. The stock must have a dividend yield of 3% to 4% at your purchase price. This ensures that the stock is probably not trading too far away from its fair value. To find out a stock's current annual dividend payment, go here: http://finance.yahoo.com/q/ks?s=KO+Key+Statistics This is preset to Coke, but you can type in any stock ticker. Look for the "forward annual dividend rate" at the bottom of the page on the right-hand side. Take this forward annual dividend rate and divide it by the price at which you are able to buy the stock. That will give you the dividend yield at your proposed purchase price. Make sure that it is 3% or more. Avoid stocks with dividend yields above 4% in the current low interest rate environment, as they can carry some hidden risks. 2. The company must have been around for at least 10 years, and preferably 20 years or more. It should be in a stable business that is not likely to change much, like selling soft drinks, candy, washing detergent, alcohol, etc. These stocks tend to be in the "consumer staples" category. You can get paid huge premiums for selling covered calls on volatile high P/E stocks like Linked-In and Yelp, but you can also lose big if the company loses relevance, or if its P/E multiple contracts faster than its earnings grow-- and the stock plummets and stays down. This high-risk, high-reward strategy is probably the subject for another book—write to me and let me know if this is something that would interest you (you can email me at [email protected]). If you want to venture away from consumer staples, you can consider energy (XOM, CVX), tech (MSFT, IBM), or drug stocks (MRK, PFE). Just be sure that the business looks sustainable. If you believe that oil will go back down to $20/barrel and stay there, or that Microsoft will no longer be selling much software in 5 years, or that Merck's pipeline of new drugs is not looking good, then you should avoid these companies. 3. The company should have a 5-year average return on equity (ROE) greater than 20%. Only high quality companies are able to earn ROE's greater than 20%, and it is a sign that they have some operating advantage or “moat.” This requirement ensures that it is a quality stock in a good business that is able to earn high returns on capital. You can find the 5-year average ROE here: http://www.advfn.com/stock-market/NYSE/KO/financials 4. The company should not be using too much long-term debt. Some companies have high ROE's only because of the excessive debt that they have taken on. Stocks with too much

debt can quickly implode if the underlying business deteriorates, and they are unable to make the interest payments on their debt. When selling covered calls, we certainly want to avoid stocks that have any risk of imploding. Here's how we measure whether a company's relative debt load is too high. Take the average of the company's last 3 years of earnings ("net income"), which you can find at the very bottom of the page here: http://finance.yahoo.com/q/is?s=KO+Income+Statement&annual Using this, we can see that Coke has earned about $8.2 billion dollars on average over the last 3 years. Now go here and calculate the company's net debt by subtracting its cash from its long-term debt: http://finance.yahoo.com/q/bs?s=KO Coke currently has about $26 billion of long-term debt and about $8 billion in cash and cash equivalents. Subtract the two, and you end up with net debt of about $18 billion. I like to make sure that net debt divided by 3-year-average income is 4.0 or less. This basically means that the company would be able to pay off all of its debt within 4 years, just from earnings and accumulated cash. Coke has net debt of $18 billion and average earnings of $8.2 billion, so it would be able to pay off all of its long-term debt in just 2.2 years. 5. You should be able to earn at least 1% per month by selling calls on the stock. In other words, on a 30 day covered call position, the call option premium divided by your proposed purchase price should be 1% or more. For a 60 day position, it should be 2% or more. For a 90 day position, 3% or more, etc. This will ensure that you are aiming for a minimum of 12% annual return (before dividends), and hopefully much higher. To summarize our conservative strategy, any covered call candidate should meet these 5 requirements: 1. Dividend yield between 3% and 4% 2. Company at least 10 years old and operating in a stable business 3. 5-year average ROE greater than 20% 4. Net debt/average three-year net income is 4.0 or less 5. Call option premium/current stock price should be at least 1% for every 30 days until expiration To start you off, here is a list of what I believe are good candidates for covered calls that meet these 5 requirements today: KO (Coke) KMB (Kimberly-Clark) BUD (Anheuser-Busch) MCD (McDonald's) These are not stock recommendations. Be sure to do your own due diligence and to consult your

own financial advisor before investing or trading. When you read this, these stocks may no longer be good candidates. Markets are constantly on the move! Feel free to email me at [email protected], if you would like to see what stocks I'm looking at for selling covered calls today.

Chapter 6: Should You Sell Puts Instead? back to top Now that you understand the basics of covered calls, I would like to surprise you: Selling cash-secured puts is exactly the same as selling covered calls. Selling puts has exactly the same risk-reward trade-off, provided that you do them at the same strike price. So for example, rather than buying Coke at 40.94 and selling the 41.00 calls, we could have simply sold ("sell to open") ten June 41.00 puts and made sure that we had $41,000 cash in our account. It is this cash that makes it a "cash-secured” put. If the stock price is below 41.00 when the put options expire, the stock will be "put" to you (i.e. you will need to buy it) at 41.00. Ten put options is equivalent to 1000 shares, so you will need to have $41,000 in your account to purchase the Coke shares at 41.00. If the stock trades well below 41.00, there is a good chance that the shares will be "put" to you even before expiration. That is why it is important to have the full amount of cash in your account at the time that you put the trade on. In all possible scenarios, these short puts would have made or lost the exact same amount of money that we saw for the June 41 covered calls above. Actually, that is not exactly true. When you sell puts, there is only 1 commission that you need to pay. When you buy the stock, and then sell covered calls, you end up paying 2 commissions. Thus, because of its lower transaction costs, selling cash-secured puts will always be slightly more profitable than selling covered calls. When you're reading about selling puts or calls, you may find some people referring to "writing covered calls," or "writing puts." Don't be confused by this terminology: "writing" is just another word for "selling," whether it's puts or calls.

Chapter 7: How to Get Started Today back to top We've covered a lot of ground in this book. I hope that you are ready to take this information and use it to make money for yourself selling covered calls or cash-secured puts. Be sure to consult your financial advisor and tax advisor first, and if all looks good, just get started. You will probably need to fill out some paperwork from your broker that will give you permission to sell/write covered calls. This is the easiest type of options trading to be approved for. It is even allowed in most IRA and other retirement accounts (at least in the US). The best way to learn about covered calls is to actually trade them. Start with very small positions, and then slowly increase them as your capital (and your confidence!) increases. There's no better way to learn than simply by doing. And I'm here to help you on your journey. If you have questions, or just want to say hi, write to me at [email protected] I love to hear from my readers, and I answer every email personally. I hope that you will find the strategy of selling calls (or cash-secured puts) to be as rewarding as I have. I have found that nothing is more exciting than waking up on the Monday morning after options expiration, selling some more calls, and watching the cash appear in your account.

Thank You back to top Before you go, I'd like to say "thank you" for purchasing my book. I know that there are lots of books on trading strategies out there, and that you took a chance with mine. So a big thanks for downloading this book and reading it all the way to the end. Now I'd like to ask for a *small* favor. Could you please take a minute and leave a review for this book on Amazon? This feedback will help me to continue to write the kind of Kindle books that help you with your trading. And if you loved it, then please let me know Click here to review this book on Amazon.

Free Bonus Chapter back to top Thanks again for purchasing my book. As a way of showing my appreciation, I’ve created a FREE BONUS CHAPTER for you. After my book’s initial publication, many of my readers asked for ways to trade covered calls in a small account ($5,000 or less capital). Other readers have asked for strategies to get even higher returns with covered calls. In this free bonus chapter, I will give you a step-by-step guide to trading covered calls in a small account, while turbo-charging returns. >>>Tap Here to Grab Your Free Bonus Chapter<<<