"Writing covered call options" (also known as "selling covered call options") is very profitable and popular way of trading call options in a sideways or down market. Writing covered calls is often the "smart money" way of trading options. It is smart for a variety of ways, but first ...
I’m talking about the Covered Call Selling strategy — a little-known niche in options trading I use to generate regular cash payments every month… By selling out-of-the-money call options on a select group of market-leading stocks. I’ve put together a series of short videos to explain...
I noted earlier that 35% of option buyers lose money and that 65% of option sellers make money. There is a very simple explanation for this fact. Since stock prices can move in 3 directions (up/down/sideways) it follows reason that only 1/3 of the time will the stock move in the d...
A Covered combination (“combo trade”) trade is the simultaneous sale of an out-of-the-money (OTM) call and an out-of-the-money put with the same expiration date on 100 shares of a stock or ETF (exchange-traded fund). It consists of a combination of a covered call...
By selling covered calls you are essentially setting a cap on the potential upside of stock in your portfolio over a given time frame and selling the rights to any gains above that level to the call buyer for a guaranteed sum of cash. Things to Remember: The deeper out-of-the-money you...
This is somewhat more likely if there is a pending dividend and the ITM short call has no time premium remaining. The Options Clearing Corporation will automatically exercise any option that is $0.01 or more in-the-money at expiration ("exercise by exception") unless the owner designa...
Selling uncovered calls. The term “uncovered” simply means you’re selling a call option contract that’s not covered by a position in the underlying security. It’s also known as a “naked” short call option. This strategy is considered very high risk, as you’re theoretically exposed ...
We are considering selling PAYC currently priced at a bid price of $105.19 and not initially attached to a covered call position. By selling deep in-the-money calls we create an opportunity to increase the capital gains (or decrease losses depending on the cost basis). Our ...
It's my mission in life to help youfall in love with selling. Not for greedy reasons, or for the love of money (although that's not a bad motivator) but because without love, you can never give fully of yourself. Simply put, you're better at doing the things you enjoy. ...
We really found our niche, um, in the real estate industry. We’re a a solutions based company and so we really, uh, we do, we spend a lot of money on direct to seller market. and we really try to solve, uh, distressed sellers in some way, shape or form, solve, uh, solutions...