Mike Scanlin is the CEO of Born To Sell (
), a web site dedicated to covered call investing. Mr. Scanlin has been trading covered calls for 37 years. His career includes investment banking, venture capital, and startup entrepreneur. He is passionate about covered calls and created Born To Sell so he could sell call options full time.
Time premium is one of the factors used in calculating returns for covered call trades, so it's important to understand how it works, says Mike Scanlin of BornToSell.com.
Generally speaking, an option can be assigned at any time prior to expiration, and Mike Scanlin of BornToSell.com details the most commonly asked questions about how the process works.
While identical from a profit and loss standpoint, Mike Scanlin of BornToSell.com explains five important factors that help distinguish covered calls from naked puts, making one of the two simpler and more efficient.