1. How do I Sell Covered Call Options? 2. How to Read Stock Option Tables 3. What Is a Bull-Put Spread?A covered call trade involves buying shares of a stock and at the same time selling call options against those shares. To maximize the profit potential of the trade, you want to...
The first is if the stock closes above the call strike at expiration. if that happens, you will be assigned on that option and required to sell 100 shares of stock to the option buyer. Since you already have the stock in your account, then you sell that stock. If you didn't have an...
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And if the option is deep ITM, there's a higher probability the stock will be called away from you before you get to collect the dividend. Anytime you sell a call option on a stock you own, you must be prepared for the possibility that the stock will be called away. When you sell...
The option is either the right to buy or the right to sell (call and put, respectively) Long Call Example A call optionis called a "call" because the owner has the right to "call the stock away" from the seller. It is also called an "option" because the owner of the call option...
the secret of selling anything to anybody is not attempting to sell just anything to just about anybody. And, in my opinion, being a good salesperson isn’t about having a good response to“sell me this pen.”(If your boss has seen the Wolf of Wall Street movie too many times, humor...
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Roll down options is the practice to move the strike price down. It is commonly used to lock in profits of ashort Callafter the stock price goes down. While GOOGL currently has a market price of $105, we can sell a Call option at $115 that expires in 2 months toanticipate a bearish...
A covered call strategy can generate more income through the premiums received while offering some protection against drops in the underlying asset price.1The tradeoff is the limit to the ETF’s potential upside on particular stocks. If the stock rises enough, the ETF has to sell it at the ...
A covered call serves as a short-termhedgeon a long stock position and allows investors to earn income via the premium received for writing the option. However, the investor forfeits stock gains if the price moves above the option'sstrike price. They are also obligated to provide 100 shares...