The Amazing Covered Call Book Summary - The Amazing Covered Call Book explained in key points

The Amazing Covered Call summary

Brief summary

The Amazing Covered Call by Don A. Singletary is a comprehensive guide to using covered calls as a strategy to generate income and reduce risk in the stock market. It provides practical tips and real-life examples to help readers master this powerful technique.

Give Feedback
Table of Contents

    The Amazing Covered Call
    Summary of key ideas

    Understanding the Covered Call Strategy

    In The Amazing Covered Call by Don A. Singletary, we delve into the world of options trading, specifically focusing on the covered call strategy. The book begins with a comprehensive explanation of what options are, the two types of options (calls and puts), and how they work. Singletary uses simple language and real-world examples to make this complex subject matter more accessible.

    We then move onto the covered call strategy itself. The author explains how this strategy involves selling call options on a stock you already own. This way, you earn income from the premiums of the options, and if the stock price rises, you still make money from selling your shares at the higher price. Singletary outlines the benefits of this strategy, such as generating additional income from your portfolio and providing some downside protection.

    Implementing the Strategy

    After understanding the theoretical foundations, Singletary walks us through the practical steps of implementing the covered call strategy. He explains how to select the right stock, choose the appropriate strike price for the call option, and the right expiration date. He emphasizes the importance of thorough research and analysis before making any trades. The author also provides a detailed guide on how to place a covered call order with a broker.

    Furthermore, Singletary discusses the tax implications of covered call options, explaining how the income from these options is taxed. He also addresses the risks involved, such as the potential for missed upside gains if the stock price increases significantly and the stock is called away.

    Advanced Strategies and Real-World Examples

    In the latter part of the book, Singletary introduces more advanced covered call strategies. He discusses scenarios where the stock price falls, and the investor can use these strategies to mitigate potential losses. The author also explains how to roll a covered call, which involves closing the current position and opening a new one with different strike prices or expiration dates.

    To solidify the concepts discussed, Singletary provides real-world examples and case studies. He walks us through various hypothetical scenarios, demonstrating how the covered call strategy works in different market conditions. These examples help readers understand how to apply the strategy in their own portfolios.

    Mastering the Covered Call Strategy

    In conclusion, The Amazing Covered Call by Don A. Singletary serves as a comprehensive guide to understanding and implementing the covered call strategy. The book is an invaluable resource for both novice and experienced investors interested in options trading. It provides a solid foundation in the covered call strategy, from the basics to more advanced techniques, and equips readers with the knowledge and confidence to start using this strategy in their own investment portfolios.

    Give Feedback
    How do we create content on this page?
    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is The Amazing Covered Call about?

    The Amazing Covered Call by Don A. Singletary is a comprehensive guide to understanding and utilizing the covered call options strategy. Whether you're new to options trading or a seasoned investor, this book provides practical tips, real-life examples, and step-by-step instructions to help you generate income and manage risk in the stock market. With clear explanations and actionable advice, you'll learn how to make the most of your investment portfolio with covered calls.

    The Amazing Covered Call Review

    The Amazing Covered Call (2021) introduces readers to the world of covered call options and their potential to enhance investment strategies. Here's why this book is worth your time:
    • Explains complex financial concepts in a clear and accessible manner, making it easy for readers of all levels to understand and apply.
    • Provides practical examples and case studies to demonstrate how covered calls can boost investment portfolios, offering tangible insights and strategies.
    • Keeps readers engaged with its real-world application and potential for maximizing returns, proving that financial literature can be both instructive and captivating.

    Who should read The Amazing Covered Call?

    • Individuals who want to generate additional income from their stock holdings

    • Investors looking to reduce their risk and enhance their stock portfolio returns

    • Those who want to learn a proven options trading strategy to maximize their profits

    About the Author

    Don A. Singletary is a renowned author in the field of finance. With over 30 years of experience in the stock market, Singletary has become an expert in options trading. He has authored several books on the topic, including "The Amazing Covered Call". Singletary's works provide practical and actionable strategies for investors looking to maximize their returns. Through his writing, he aims to demystify complex financial concepts and empower readers to take control of their investment portfolios.

    Categories with The Amazing Covered Call

    People ❤️ Blinkist 
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    4.7 Stars
    Average ratings on iOS and Google Play
    36 Million
    Downloads on all platforms
    10+ years
    Experience igniting personal growth
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Get started

    The Amazing Covered Call FAQs 

    What is the main message of The Amazing Covered Call?

    The main message of The Amazing Covered Call is financial empowerment through covered call options.

    How long does it take to read The Amazing Covered Call?

    The estimated reading time for The Amazing Covered Call is several hours. The Blinkist summary can be read in less than 15 minutes.

    Is The Amazing Covered Call a good book? Is it worth reading?

    The Amazing Covered Call is worth reading for its practical insights on maximizing covered call strategies efficiently.

    Who is the author of The Amazing Covered Call?

    Don A. Singletary is the author of The Amazing Covered Call.

    What to read after The Amazing Covered Call?

    If you're wondering what to read next after The Amazing Covered Call, here are some recommendations we suggest:
    • Basic Economics by Thomas Sowell
    • The Ascent of Money by Niall Ferguson
    • Think and Grow Rich by Napoleon Hill
    • The 4-Hour Workweek by Tim Ferriss
    • Rich Dad, Poor Dad by Robert T. Kiyosaki
    • Secrets of the Millionaire Mind by T. Harv Eker
    • The Richest Man in Babylon by George S. Clason
    • Business Adventures by John Brooks
    • The Most Important Thing by Howard Marks
    • More Money Than God by Sebastian Mallaby