I knew it was a matter of time till I had some positions go against me but the shear amount of drop, I will admit was disconcerting. When selling monthly covered calls that profit margin will be pretty small at first. I had a client once who started out with 2,000 shares of a company called Siebel Systems. Good GOD!!! I traded a little over $12,000.00 worth Tuesday and another $13,000.00 + on Friday! A covered call position is created by buying stock and selling call options on a share-for-share basis. Buying protective puts on each position that I have and several other ideas. The covered call option is an investment strategy where an investor combines holding a buy position in a stock and at the same time, sells call options on the same stock to generate an additional income stream. Bought APHA for $18.63 and sold Feb. 12th $19 calls for $1.03, Bought APT for $16.70 and sold Feb. 12th $17.50 calls for $.51, Bought CLVS for $9.17 and sold Feb. 12th $9.50 calls for $.64, Bought CODX for $18.90 and sold Feb. 12th $20.00 calls for $.54, Bought CRON for $12.75 and sold Feb. 12th $13.00 calls for $.38, Bought FOSL for $16.77 and sold Feb. 12th $17.00 calls for $1.07, Bought KODK for $11.31 and sold Feb. 12th $11.50 calls for $.67, Bought MNKD for $5.10 and sold Feb. 12th $5.00 calls for $.43, Bought SRNE for $14.08 and sold Feb. 12th $14.00 calls for $1.02, Bought TLRY for $26.09 and sold Feb. 12th $26.00 calls for $1.93, Bought WKHS for 38.78 and sold Feb. 12th $39.00 calls for $2.10. So, I rolled the contracts forward a week. Writing Covered Calls. I’m still learning to and having to literally sit on my hands sometimes to keep from doing something rash. Sold BB Feb. 12th $15.00 calls for $.72 Third time I sold calls on this stock position. As of today 3/2/21 I managed to bring in $6,190.89 of trades expiring March the 5th. That may not happen while you have a covered call position on in the stock, but the overvalued company does not have to stumble – it merely has to issue negative or “cooling-off” guidance. Covered calls are an easy and conservative income-oriented investment strategy. If the strike price is less than your cost, you risk your stock getting called at a loss I’m just wanting something that I can do that will not take up too much time each week. All option sales were for February 26th expirations. This is what I envisioned for the site where people who really trade options will comment and interact with each other giving all of us a great learning experience. Had some volatile stocks tank on me and with a $40,000.00 drop in account value, I see, I am not as tough as I thought. According to Taxes and Investing, the money received from selling a covered call is not included in income at the time the call is sold. The key is to remember to buy high-quality equities or ETF’s. Buy Shares. First, buyers who like to use covered calls can sell deep in-the-money options if they are looking to get out of the stock. I long SLV (silver) and sell very long dated covered call (600 days) because I have a large position which is 40% of my portfolio and silver is more volatile than QQQ. "Covered call writing," which is sometimes referred to as "selling covered calls," is my favorite strategy to generate investment income from a portfolio. By selling covered calls you are generating income and providing a small buffer in the event of a move down. Selling options is very profitable. A covered call strategy involves writing call options against a stock the investor owns to generate income and/or hedge risk. Question, since I've never sold covered calls before and I haven't seen this discussed here yet so maybe there is something I'm missing: If you held XXX shares, would a valid strategy when the MOASS kicks off be to, instead of selling any of your shares, to sell longer dated covered calls … Next, we need to figure out what expiry date options do we want to sell covered calls for. You buy to close the open call position since you sold to open it in the first place. I have CRON which is down over 30% but since I have sold calls on it 4 times; my cost basis is still within range of the current price to be able to sell calls and still make a profit. “If you choose not to decide, you still have made a choice”. Selling Covered Calls For Income By Stock Options Channel Staff « Back to Page 1 | Page 2 of 2 . Sold AMC Feb 19th $6.00 calls for $.20 these if called will result in a loss in AMC stock. Not that that’s a bad thing. A covered call consists of two different components; the first component being that you own at least 100 shares of the stock you are looking to cover. Question - Covered Call Selling and Expiration Month. Or, if you're still very bullish then try selling call options for some near-term out-of-the-money covered calls… Selling covered calls can help you earn money on your existing holdings by collecting option premium, but you may end up holding on to shares for a long time. That’s the lowest number I have had called since I started trading this past October. 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Bought APHA for $18.63 and sold Feb. 12th $19 calls for $1.03 I haven’t decided. Monday, I will look at the options I traded Friday and see if the premium is worth buying back the cheep options and selling another round. Selling in the money covered calls can be an excellent income generating strategy for those living off investments. Good news is my portfolio value held up. All April 9th expirations. $59,242.60 of losses. Expecting Immediate Returns. This is by far the hardest part of trading in my opinion. Got orders in for several more that have not traded, Bought BMY June 18th $60.00 calls for $4.36, Bought BMY June 18th $67.5 calls for $.93. I ended up taking on some risky stocks last week that fell in price. Half of my 5 months of profits. New goal is for $10,000.00 per week as I have increased my account value to the point I am selling covered calls and buying the underlying stock with profit from other sales. 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For doing this, you might ask murder on my account balance if they are to.
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