When used correctly, leverage can help you to achieve much bigger returns than you’d normally be able to with your own money. As with all things, leverage needs to be used carefully and in moderation.
Writing covered calls can increase the total yield on otherwise fairly static trading positions. It’s often used by portfolio managers who control large funds.
When selling (writing) options, one crucial consideration is the margin requirement. Correct planning in this area will help you to avoid the stress...