What is a "Covered Call"?

A covered call involves an investor who holds a long position in a stock, selling call options on a portion of the position they hold. This can be a bit confusing, but one way to intuitively think about it is that the investor is selling the right for someone else to buy their stock at a prespecified price. So, the investor who holds the stock benefits from being paid the call premium while the buyer of the option will only exercise it if the price rises. The ideal scenario for an investor using covered calls is if the option is not exercised which means they get to keep the premium and do not have to sell shares at a loss. In the event that the call option is exercised, the investor is taking a loss by selling shares below their market value, but this is partially offset by the appreciation of the holdings that the investor did not sell calls on.
Unlock Premium - Try 5i Free

Geo-political tensions are worrisome, but should not affect construction of investor portfolio. "Panic buying/selling" not a good way to mange investments. Quality companies will perform regardless of tensions in Middle East. When others "panic sell" - can be a good buying opportunity for disciplined investors. Interest rates & inflation are much more important to investors. Underlying fundamentals of companies (debt, cash flow, margins, management etc.) are the preferred indicators to company health. 

It's the best oil major that will benefit from the LNG boom in the next decade. Trades at 9x PE and pays a 4% dividend.

The best way to play copper which is seeing demand going up and supplies limited.

South Korean e-commerce is strong given the consumer. Their paid membership prices are increasing 58%, so let's see if they have pricing power.

Trades at 90x PE and is declining on nearly every metric. GM trades at 4.7x PE. Tesla is not a growth company anymore.

Believes there are signs of resurgence in industrial & manufacturing activity across the economy. Supply chain issues starting to resolve themselves. Expecting growth will continue globally, as long as inflation doesn't remain high. Upcoming CPI numbers will indicate state of global economy. If inflation rates aren't too high, interests rates may fall. Energy & materials complex starting to lead markets, while technology stocks are lagging. Will continue to own stocks (not selling) despite risk of inflation spike, and risk of recession.