The Maximum Risk of selling covered puts is infinite, as the stock can rise infinitely. Most conservative investors shy away from shorting stock. If good news comes out, the stock could rise suddenly, faster than the investor can roll the put. ...
"I sold a bunch of 2023 $1300 covered calls and as of now I'm planning to let them execute. Maybe I'll roll them up to $1500, we'll see." I found that on the main thread. For the benefit of newbies here (me!), can someone please provide insight on what is the thinkin...
Most investors believe that by sellingcovered callsorcash secured putsthey could achieve additional income from the securities they own or plan to own. This additional return comes from taking on the additional risk of potentially exercising your options, which could hurt your total returns. The S&P...
My perception is that with selling covered calls and cash covered puts what once can accomplish is to smooth out a lot of bumps vs. being just invested into stock. You'll still likely get some gain, but it is overall going to be more steady and you can use this to take out so...
The appeal of selling calls is that you receive a cash premium upfront and do not have to lay out anything immediately. If the stock falls, stays flat, or even rises just a little at expiration, you’ll make money. However, you won’t be able to multiply your money in the same way...
Once you’ve chosen your strike price and month of expiration, you’ll need to make sure there’s enough cash in your account to pay for the shares if the put is assigned (hence the term “cash-secured” puts). Ideally, you want the stock price to dip slightly below the strike price...
For those of us who additionally buy calls or puts I have not seen a comparable organization. I believe this is because buying calls and puts is much more risky. Alan listed the five possible outcomes above and we know that in covered call selling we only lose in with the last outcome....
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Anyone in the US have a Roth that allows them to sell covered calls against long calls (have to be ITM?)? My broker has initially responded that I can’t do it in my Roth. Yes. I have level 3 with spreads. In E*TRADE. Reactions: riverFox, MP3Mike, Discoducky and 2 othe...
Whoops! Fat fingered one of my covered calls. Thought I had set it to expire on 20 Nov, but instead it expires 27 Nov. As I also had set up the same call on Friday, I now have two 540 strike 27Nov calls. Going to try and close out the accidental one sometime early nex...