When managing a covered call portfolio requires an investor to have a rough idea of support and resistance in the stocks against which covered calls have been sold. Using this knowledge, it is possible to swing trade the normal volatility of the stock market by selling covered calls when the stock approaches resistance, repurchase the calls when the stock declines toward support, and then resell the covered calls when the stock rallies again. This does not change the overall position of the portfolio, but does allow the investor to make some extra monthly income which can be substantial for larger stock positions. If you know how to play the swings in the market you can supply yourself with some extra income.
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Extra income with swing trading stocks
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