Covered Calls

Recently getting in to this low risk strategy with better success on a personal level.

There is enough information on covered call strategies online so I won't bore you with the fundamentals with this post.

What I do realise, however, is that the covered call strategy works not on with stocks as an asset class, but also FX.

Trading this with Saxo is possible because they are one of the few brokers who offer FX Options. These are OTC European options which are very liquid and full of Greek information.

One concern has always been leverage, so it is very important when doing FX covered calls or covered puts, to manage your trade size. Be wary that FX moves can be huge in a single day.

As compared to stock covered calls which I normally buy monthly, FX ones I normally buy weekly or fortnightly.