This is not investment advice!
Property ownership is life changing for many people. Steemit itself is an introduction to property ownership allowing many people who have little experience as property owners to acquire property from their labor in an economy where most laborers aren't owners.
Dividend stocks are a source of income for people who wish to transition away or out of the cryptoverse and diversify into something less risky. Crypto tokens are high risk high return, but if you hold long term as an investor or stakeholder rather than a short term day trading speculator you might be successful.
What is a covered call?
- Covered calls are a way of trading options with minimized risk.
- In covered call options you own the stock and sell the option (legal right but not obligation) to purchase the stock in the future at a price and date you determine, with a premium determined by the market.
- In summary you can sell the legal right for an unknown buyer to purchase 100 shares at the strike price prior to the expiration date. But you can lose slightly depending on the price movement of the stock, and the potential for profit is limited by the strike price.
A single option, whether put or call, represents a round lot, or 100 shares of a given underlying stock. Call options are upwardly speculative securities by nature, at least from a buyer's perspective. Investors who purchase a call option believe that the price of the underlying stock is going to rise, perhaps dramatically, but they may not have the cash to purchase as much of the stock as they would like. They can therefore pay a small premium to a seller (or writer) who believes that the stock price will either decline or remain constant. This premium, in exchange for the call option, gives the buyer the right, or option, to buy the stock at the option's strike price, instead of at the anticipated higher market price.
So you sell the right to buy the shares from you at a fixed price and set date. The strike price is the price you agree to sell your shares for.