TY - JOUR AU - Samsa, Greg PY - 2020/01/28 Y2 - 2024/03/28 TI - A simple method for amateur investors to analyze covered call options JF - Archives of Business Research JA - ABR VL - 8 IS - 1 SE - Articles DO - 10.14738/abr.81.7709 UR - https://journals.scholarpublishing.org/index.php/ABR/article/view/7709 SP - 227-235 AB - <p>We describe a simple method which amateur investors can use to analyze covered calls.&nbsp; The most basic version is based on the formula for the expectation of a truncated Gaussian distribution, and it can be generalized to accommodate other assumptions.&nbsp; This approach might be especially considered during a time of market overvaluation, such as the present. &nbsp;During such times, investors should shift their preferences toward writing deep-in-the-money covered calls, which provide a greater margin of safety while monetizing the (probably optimistic) expectations of other market participants regarding future returns.</p> ER -