What are call options? Why should retirees care about them? + MORE Feb 10th

All about Canadian investments. Learn the ins and outs and get the latest news.
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Amid the tumult of sharply rising interest rates, stubbornly high inflation and geopolitical risks, stocks have continued to slide. The market rout that began in early 2022 has hit retirees and those saving for retirement particularly hard.

Even bonds, usually thought of as a safe haven for investors, lost their value as interest rates spiked, given the inverse correlation between interest rates and bond prices.

In this environment, investors saving for retirement may want to consider a different approach to boost their income. One strategy that could help is to use a covered call writing strategy. Before we explore that, though, let’s look at the financial instrument the strategy uses: call options.

What is a call option? 

A call option is an agreement between two parties that gives the option buyer the right, but not the obligation, to buy a stock at a certain price (the “strike price”), within a specified time frame. The buyer pays a fee, called a premium, to the seller for that right…

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Adani Group Stocks Slide After MSCI Says Reviewing Free Float  Bloomberg TelevisionAdani Stocks Remain in MSCI Indexes After Quarterly Review  BNN BloombergMSCI to cut weighting of four Adani firms in wake of Hindenburg report  Financial PostSustainalytics downgrades three Adani companies’ governance scores  Reuters.comAdani Stock Rout Deepens as MSCI Cuts Free Float of Some Firms  BNN BloombergView Full Coverage on Google News

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