Covered Calls for Beginners (Options Trading Strategy Tutorial)

[@projectfinance]

🔥 [UPDATED VERSION] Covered Calls for Beginners (Zero to Hero): kzbin.info/www/bejne/ioeyd5WMZs2AfK8

[@marinhughes1917]

6 minutes in, and I already understand this perfectly. Your speaking style is quick, but your content is clear and to the point. Great video.

[@thesaltmachine4685]

im paying for a series 65 class right now and this videos first 4 minutes were better than my last 2 hours of trying to read about this

[@projectfinance]

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf I watched this video a year later and I must say I'm sorry for speaking so fast! I hope you all get value from it. Please let me know if you have any questions by leaving a comment. -Chris

[@StanislavVaysberg]

I thought when you sell the covered call, you would immediately get the premium money..however, it does not work that way!? Do you cahs the premium at the expiration date of the call?

[@projectfinance]

You collect the premium when selling the call, but that doesn't mean it's a profit. If I short an option and collect $500 in premium, and the option is still worth $500 in premium, I haven't made anything, but I have collected $500 into my account. But if the option premium falls to $300, I can buy it back for $300 and I'll realize a $200 profit ($500 came into my account, $300 went out when buying the option to close it). With a covered call, the call that is sold is 100% extrinsic value, and you essentially capture 100% of that extrinsic value if you hold the position to expiration (which is safe when you own 100 shares).

[@deniserogers3484]

Please. If I don’t get it the first time, I’ll just watch it again.

[@sblomita]

Excellent work on all the videos I have seen. It would seem to me that selling covered call options would be the safest way to ensure that you realize some profit, even if you lose the unlimited upside on occasion. Am I reading this correctly?

[@graceguo4707]

If my covered call option is in the money, but hasn't been assigned, what will happen on expiration day?

[@jesset315]

Dude! This video answered all may questions about covered calls. I've been looking all over youtube and the internet for this information and not having to join group for a "small fee". Thumbs up and subscribed!

[@bootleg1514]

Im 2 years late but ive been binge watching your videos. Thanks man. I placed my first covered call today. I really don't want to get assigned cause its my biggest winner but if I do I double my money on that stock so I can't complain too much. You're the man.

[@klkmelaza3540]

I must have spent like an hour just rewinding and pausing just to make sure I grasped the concept, but it was well worth it, thank you !

[@nio665]

Same here

[@yansu6923]

I am new in option trade. I have watched this video several times. Finally I understand covered call options concepts and traded my first covered call option. Your Options Trading Strategy Tutorial is very valuable. Thank you for your excellent teaching Chris! I have learned more from your free videos than paid option trainings.

[@TheKdizzle1971]

Could you teach me???????

[@KoolSocietyFilms]

Not to be too nosey but what did u profit ???

[@nominasuntodioza2725]

Thanks! 31.5 minutes of my lifetime and I totally understand this strategy!

[@tanyayouvan2967]

I've watched numerous other tutorial videos on this topic and Chris's was FAR SUPERIOR. Thank you.

[@deniserogers3484]

Love how you seem to enjoy doing these vids. It shows how much you believe in your teachings. Please never stop.

[@projectfinance]

Thank you! I do enjoy making the videos. I’ll have to redo this one. My new videos are far better!

[@Hari-888]

You probably have the best way of explaining things on options and trading than any other video i've seen

[@sherylbee8634]

Oh my gosh you're SUCH a good teacher! I've been hunting for days for an intelligible explanation of how covered calls work and have been drowning in unnecessary and confusing metaphors and ppl using jargon to define jargon like MAKE IT STOP!!! thank you so much for this video. *Subscribed*all notifications ON* you da real mvp. 🏆

[@MrPannozzo]

Greatly appreciate this video. I'm starting out on covered calls, plus a new brokerage account with Tastyworks. This clearly shows how to place a trade. Thank you!

[@jays8816]

This cleared up a lot. I was write when I first learned of covers calls, then I over thought it and got confused by a few different numbers on my trading platform and option calculator. Now I'm set straight. Thanks so much. I'm on my way to becoming a pro like you.

[@joesemo]

Hi Chris. All of my Covered Calls (100+ positions, monthlies) are set up to be called away. I know in advance my total trade profit when the stocks get called away. So my Delta is almost always 50+ when I set it up. The SPY etf is the only stock I like to hold on long term. I like to sell 10-15 delta for covered calls against - if it gets called away then its time for Cash Secured Puts to buy it back at a lower price

[@aseemv8312]

Thanks for making this, once the best explained cover call videos in my opinion. Most don’t touch a lot of small details you did, I hope you have one on selling cash covered puts.

[@prasadchandgadkar6050]

Great tutorial Chris! I was looking for a specific answer re. to trade off between premiums and downside protection.. your coverage on this was to the point!

[@JeFFiNat0R]

your videos are amazing man, filled with actionable in depth knowledge. thank you so much for not charging for these!

[@zachafsari]

i did enjoy learning more about option and most importantly about covered call, thanks a lot, i really appreciate you giving all these information for free.

[@juanjmoran6951]

I am very new at this, I watched your video 3 times and I'm still lost. I am going to keep on trying.

[@SmokeytheBear66]

I'd start with buying calls and puts before selling any.

[@NamekSaiyan]

FACTS

[@MrRaja]

Yea don't worry about the selling a call or put yet. That is advanced stuff. Just focus on buying a call and put for now.

[@macrinosanchezflores3858]

3 veces, 10 veces, las que se necesiten! tu puedes!!

[@jrizzle1222]

u need to understand what an option is before u try to understand this

[@jameskinney4543]

I started in 2020 trading with this strategy and made $9000! I’m excited to master this and really have a solid 2021. Thanks! Do you offer classes?

[@michaelv2376]

Great Video - easy to understand how to trade Covered Call. unless I missed something from the presentation, there was no mention of trading in and at the money advantages, if any , and no mention of Open Interest of the stock (volume trading )-Thank you again Michael V

[@maxkelter3561]

Many thanks Chris on your explanation of covered calls. And I really like when you show what you just said so I stop the vid to look at it in writing.

[@fernyang2540]

Thanks so much Chris, I watched this video after having finished your option trading for beginners. You are an amazing teacher! I completely understand covered call after watching this video two times. Remember I was brand new to options. Really appreciate your time on this. Could you touch on later in your videos option stocks, for example DFN? How are these stocks running? I don't get it.

[@adrianferreira4236]

Hands down. The greatest options video I’ve watched on KZbin 🙌🏼🙌🏼🙏🏻

[@vickynhi6482]

Hello, may I ask that during the time of the option, the option has hit the maximum profit before expiration then can I buy to close my position right at that time and so how much would I profit then? 1) premium + maximum profit 2) just maximum profit 3) maximum profit - premium This would truly help. Thanks so much in advance

[@gregcohen1164]

What is the best way to go about selecting a stock in one's portfolio that would be ideal for a selling covered call strategy? A stock with a lower volatility that is more likely to trade flat/within a certain range?

[@jordanlane3377]

T-e-x-t o-n w-h-@-t-s@-p-p for guidance

[@jordanlane3377]

+ 1 7 2 0 6 2 3 5 4 6 9

[@jarinorvanto4301]

Ca 23:10... Yes, you can adjust by creating a new position more often, with a shorter time before expiry. But that also illicits new commission and clearance fee.

[@KayodeKukuMD]

Very helpful, just getting into options after trading stocks for about 4 years

[@tammy3458]

👍🏻👍🏻Thanks for an AWESOME VIDEO!!! U made covered calls easier to understand. So many tutorials assume people know all about covered calls & us beginners have a hard time following along. My question is:What specific criteria do u research when choosing a stock to write a covered call on? Thanks so much:)

[@millysanchez7137]

Giving it another shot cause I want to start trading options which will be better for a beginner?

[@tanyayouvan2967]

FAR SUPERIOR to other tutorial videos I've watched on this topic. Thank you.

[@devonspears8351]

Thank you your videos have been very helpful I have a question . When do you get the money when you sell a cover call

[@owenpeller6471]

Is there a good way to choose what specific stocks to sell covered call options on

[@kenmosholder1935]

Hey Chris, a great and informative video. Very well done. Actually I appreciated the fact that you spoke fast. So many videoes have extra fluff. This was straight to the point. Great job!

[@jonathanchester4296]

This is a great learner videos on figuring out how covered calls work. Although keep in mind that you have to pay 40% in taxes (roughly) once you sell the stock.

[@danielclayton3170]

Easy for me to subscribe .why? Your the 1st person to talk slow an clear so viewers can absorb info.most traders are so jazzed up they mumble an assume the viewers are already an advanced trader. THANKS

[@projectfinance]

Ahaha I'm glad you think so. I was literally JUST watching this video and I thought, wow, I'm speaking way too fast! I'm glad it helped you understand! Stay tuned for a MEGA tutorial for beginners.

[@deividluiz7895]

What online broker do you recommend to do a covered call in Europe?

[@purnachandarm5592]

Thank you sir.. Nice and succinct explanation. I'm a fan of yours after watching your 2:53:00 video for the beginners (multiple times to absorb the wealth of info there) and then this one now.

[@cerenademe9433]

Glad to know I'm not the only one that has had to watch that video several times...

[@charleswilson5989]

absolutely great tuition Chris very clear and straight to the point. best of all you give the risk factors a real amplification. No one should be surprised at a loss should it happen.

[@gordonraddy]

Extremely good job! Well done. Clear audio, great examples and easy to follow. Do you happen to have more on options i.e. in regard to the greeks?

[@KSBond007]

Hello Chris, is it optimal to sell a covered call when the stock is at resistance? So the stock most likely would go down from the highs.

[@rezaarjmand7866]

here is one question. you have 2 different stocks. compony A and compony B. both stocks are trading at $100 per share. if you look at the same striking dates ( for example 30 days) and striking price. would both premiums prices be the same amount or be very close or can be very different?

[@verdenacional88]

My only question is ... when a stock starts to offer options like Roblox who am i selling the first cover call too? To my understanding when I get a sell call option I am going against someone that is buying the call ? Or am I going against someone that is selling a put ? Can I buy a cover call and sell a cover call to make even more money ?

[@ABD-vm8gb]

Dude you are the best out there to explain in simple words ..... I would definitely recommend your channel to my friends . Thanks and Good Luck

[@projectfinance]

Thanks for watching and for the support! I appreciate it.

[@mtaskovski]

Great video and awesome presentation. What is recommended Platform/App for practising Covered calls (I have tried 500+, IG, Tradingview but they are all limited for Demo trading). Thanks

[@mattfletcher12]

I've been trading for years and with your help, finally got up enough courage to start trading options. Thank you!

[@projectfinance]

Great to hear! I'm glad the videos have helped.

[@GIJew]

Wish this is the way it went for more people. Sadly, especially today, it's usually people jumping into options without even knowing how basic stock trading works. They end up losing everything in the process because naturally they know nothing about options or how they work.

[@martakempton3132]

Fantastic video and explanations all around, loved it! Thanks for being so succinct in your teachings. I came here to learn what would happen if I unraveled a covered call and learned a big lesson. Thanks so much, Chris!

[@tonynunez6539]

Great video. You cover all the possibilities and options in Great detail. This is very complex for most people but you explain it well and cover all the risks. Thank you.

[@johnpearce3397]

To clarify, if the covered call option sold is not in the money (below option strike price) and I want to secure that premium as profit do I have to buy back that option I sold or just let the option expire through expiration date? Thank you and great video.

[@garyshar9451]

hi, love ur videos and appreciate the way u teach, way better than other videos. If you have 100 shares and we're going to place a limit sell order to exit the position why would you not use a covered call and collect the premium as well say monthly and reload until it sells at woukd would have been ur limit price which u choose as your strike price?

[@DamianWader]

Still totally confused but I want to learn this strategy haha Thanks

[@Onibabayaga]

Great video but I don't understand the potential "loss"; what stock price is that loss based on? If you place a covered call and the stock goes down, do you lose money beyond just the reduction in value of the stock?

[@shibbyshim3430]

Same qstn!

[@projectfinance]

If you have a covered call position, you own 100 shares and you're short 1 call option. If you bought the shares for $90/share and shorted the call for a price of $5.00, then your downside breakeven price is $85 overall (paid $9,000 for the shares and received $500 for the option). The short call reduces your downside loss potential. Am I misinterpreting what you're talking about? I could have been talking about opportunity cost. If you buy 100 shares at $90/share and short the 100 call, your share gains are limited to $10/share since you have to sell your shares at $100 if you hold the covered call through expiration and the stock price is above $100/share. If the share price goes to $190, you would have made $10,000 on your shares, but if you had the covered call, your gain would have only been $1,000 + call premium collected. So by selling a covered call you are effectively selling your upside potential on the shares at the call's strike price.

[@Onibabayaga]

@@projectfinance I'm referring to what exactly the "max loss" is on a scenario where you have 100 shares of a stock, and you sell a covered call at a selected higher price at a selected later date and then someone buys it, thinking the stock will go up too (right?)... I know what happens to the person who bought the option at that strike price; they just lose money based on when they get out of it but what happens to the person who had those 100 stocks to begin with (originator of it) if the stock just goes down?

[@projectfinance]

@@Onibabayaga The max loss is your 100 share cost - call premium received. If you buy 100 shares at $90/share and short the 95 call for $500 in premium, your max loss is $8,500 (stock goes to $0). If the stock goes to $0, you lose $9,000 on your shares and make $500 on the option.

[@Onibabayaga]

@@projectfinance Ok so the 'max loss' is really a theoretical value; that doesn't happen in practice. Got it thanks!

[@mtorres469]

Hi, your video is very informative. I have a question, I sold a covered call for a 30 day expiration day. After two weeks the stock surpassed my strike price. What would happen if I decide to sell my shares even though I wrote a call on them? In other words not respecting the contract. Thank you for your reply.

[@mtorres469]

@@loreall.2461 thanks for your answer

[@tyf5486]

Scenario: I sell a covered call and the strike price is realized and I get exercised. If I wished to keep the stock long term, wouldn’t buying the stock from the proceeds also be a safe strategy? Example: Current stock price is $100 I sell a $105 covered call The stock goes to $105.02 and I get exercised. I could, assuming I’m watching this happen, turn around and buy the stock again at or near that price having collected now the full option profit and own the stock again. Thanks Great videos by the way!

[@projectfinance]

You would not get exercised with the stock at $105.02 because the 105 call would have mostly extrinsic value, which the buyer loses if they exercise the option. But if the stock was at $105.02 at expiration and you held it through, you’d lose the shares but you’d make a full profit (less two cents) on your short 105 call. To make things easier you could just buy back the short call for a few pennies right before expiration and you’d keep your shares.

[@ansonchng6192]

Thank you! one question: can we roll-over the call options we sold, just like how we usually roll-over put options to keep collecting premium?

[@JK-vb9ps]

Chris, 1. If I sell a covered call option, and the stock price eventually goes higher than the strike price, the stock will get assigned to the call buyer. Do I have to do anything or does the trading platform automatically debits 100 shares from my account upon expiration date? 2. Is it possible that the buyer exercises the option before the expiration date?(assuming stock price is higher than strike price). In this scenario, what happens? The 100 shares is deducted immediately from my account? 3. If my covered call option is ITM before expiration date, why wouldn’t the call buyer exercise earlier before expiration date? Tks a lot!

[@youtuberastro]

I have the same questions. J K, did you find the answers?

[@swatism]

Loved the. video... Thank you so much for it. A quick question... If I was on the other side.. If I bought the call option for a strike price of $20 expiry 30 days out and paid premium of .50. The next week stock price goes to 21. Should I exercise the option buy the stock for 20 and immediately sell for 21, making .50 profit? or should I do something else? the expiry date is still 20 +days away

[@wyatt3211]

When the strike price has been reached during the option but is below the strike price at expiration can it be assigned?

[@gabrieltasigeorgos4534]

Great video! Thanks for posting! Got a question if I may (disclaimer: I am a rookie in options trading so it might be super silly) It seems to me that when long on options one should be looking for min theta/delta ratio with the following reasoning: When long one would presumably like to (a) minimize theta/cost (get the lowest theta for the cost to be paid for the option) and (b) maximize delta/cost (get the biggest increase for the option per cost paid). This leads by division to min theta/delta Is there a fault in the reasoning? (surprised if that is a silver bullet why there's not another greek calculating this directly)

[@admiralknnight5779]

Nice & simple...One query, please...If the strike price is higher at expiration than the spot...that is OTM, you keep the premium.... but if strike price is less than the spot, it becomes ITM. So you tender the shares & make money through share price appreciation along with premium. What if the share appreciates above the break-even price? I have the above profits but have lost on the share value appreciation. Technically I am still profitable & can buy the shares again at a higher price & sell covered call again at the prevalent rate. Would I be correct with the understanding of covered call?

[@paulsnyder681]

Good intro for me into options. Thank you.

[@jordanlane3377]

T-e-x-t o-n w-h-@-t-s@-p-p for guidance

[@aceortix]

If selling CALLS is good If stock price remains flat or go down, can we also say selling PUTS can be good if stock price goes up?

[@winq9322]

Thank you so much for sharing this very helpful/useful/practical option strategy. I love the way you explained. I'm new and just did my first covered call on a stock that I hold. Quick question: 1. If I hold the covered call I sold through expiration and it happens to be in the money, do I incur a loss on my sold covered call due to the shorted call value goes up more than that when I short sold it? Or I will get to collect the premium anyway even it gets exercised? 2. If the covered call expires worthless, will the premium be then added to my account a day following the expiration automatically without me taking any action? Sorry for the lengthy questions. Thanks again!

[@charleswilson5989]

Hi Chris your the man, I think that tuition was 100% perfect for all the Guys , I certainly learned a lot. Thank you Keep them Coming charles UK

[@richloska853]

Love watching your videos - very helpful. I hope this isnt so dumb, but why when you sell covered calls the money show as a positive but it only comes to you over the time of the option and not all at once? Did that make sense?

[@tomtomtom7411]

Thank you so much for this video. What happens if the price of the stock I covered call drops the price below my initial cost at the expired date?

[@joshhansen8237]

U keep shares and premium, basically whoever bought that call loses money because it’s worthless to them now. The buyer will only exercise call if the stock price rises above strike price, then u still just get profit for your shares and keep premium

[@tomtomtom7411]

@@joshhansen8237 Thank you

[@nio665]

Great video. After searching this is the best by far

[@mslucia5913]

Hi great video. How would you set up a covered call when an account already has the 100 shares in the account (tastyworks). Would you just sell a call?

[@franciscocuza1535]

Precisely my question and follow up is....can you continue to do it?

[@sudhat1650]

Thank you! The FAQ was my favorite part of the video :)

[@ida4587]

I love how you explain things and how you do it with a smile in your face, you really enjoy what you are doing and it shows. Thank you for your videos.

[@projectfinance]

Thank you for watching/leaving a nice comment! I appreciate your kind words here.

[@verdenacional88]

Great video man you really explain everything so simple selling cover calls is great !

[@daviddean19]

Hi Chris, all your videos have been excellent. One question, when selling covered calls, let’s say if the shares go above the strike price and you are exercised to sell your contract…. Can’t The next thing you do is just buy 100 shares of the same stock and do another covered call. Is there a downside to doing this? I understand it may be starting at a higher share price, but nothing has been lost, there has just been less gain. Correct?

[@woyeshinibaba]

i'm losing a lot on NIO, and I'm going to set up a covered call. thank you!

[@desimail1]

Outstanding video!!! Can’t wait for market open to sell covered calls. Been trading options for a year and was always worried about selling options contracts. Win win. Time to make money the smart way.

[@erichoang48]

Great video, Chris! Can you walk through the process after your short call is exercised or sold? If the option has changed hands multiple times, what happens on your end as the original short caller? Also, from a buyer's perspective, what scenario would cause a high strike price to come with a high premium at a short expiration date? Is this scenario caused when a strong catalyst is confirmed and, therefore, priced into the high premium? Thanks!

[@user-gc9cb4sv7i]

Excellent video. Congrats mate!!

[@CPTRAYS]

Hey Great Video again on options! I was just wondering if you can collect small premium on weekly expiration date (weekly passive income), without wanting to sell your share so you choose a very safe OTM strike price?

[@bigloser1989]

Do we have to pre buy the Shares before performing a covered call. Example: I would purchase the shares as a Normal stock. Then I would go to the options portion and then choose Covered Call. Or can I already go to the options page when I don't own the 100 shares yet and Choose Covered Call and purchase the shares as I choose my Strike price? Hope that made sense.

[@brendanm9847]

if the call option reaches the strike price but then dips below the strike price what happens? Does it need to be in the money on expiration day or can it be exercised any time its in the money during the time until expiration?

[@LCRRcreed]

Not sure if you still look at the posts but!!! I see when you go to make a covered call, you can also set a limit price. How does the limit price impact the overall covered call?

[@edwarddaoud2293]

Chris: You have a great style for presenting the concept. The only thing I may as is to take a breath between sentences to give the audience chance to take comments. Over all great style.

[@ida4587]

An option for the viewer is to slow down the video play back or just go back if they missed anything. That's what I do.

[@thumbwielder]

Chris, what metrics do you use to choose a covered call strategy? Initial stock price so you can buy at least 10-100-1000sh? How much in or out of the $, how far out to write the sell to open? I’ve had some success in the short term but am looking to drill down a little deeper to avoid as many bear traps while still maximizing. Currently I’m sticking with an ETF. Do you have any books or articles to recommend?

[@Redheadsftw1]

Really appreciate the info. Presented clearly and concisely. Great video for new options traders

[@Bluespindle]

Thank you Chris, wish i knew this earlier in life, I am looking ot build a stream of income and looking to sell the shovel to the gold rush miners :) How do you identify stocks for this strategy?

[@israelgitlin4081]

At expiration and the stock is still below the strike price what do you do to reel in the profits?

[@Mustafa__0321-1]

This was a great video to explain everything I needed to understand covered calls thank you

[@unmilpatel955]

Your videos are amazing. I can say I learnt everything about options from your videos. I have a quick question about Calendar covered calls. I will share my example and would appreciate if you can help me out. I bought $17.5 Palantir call expiring 01/2022. When Palantir was $34 last week, I sold a $35 call expiring Friday for a credit of $200. Now on Thursday, it went above $35 and I was in dilemma if I let the call assign. What would happen to the long call? How would you calculate the profit on the $17.5 long call that will be sold on the assignment of $35 short call? Would appreciate your advise. You are awesome.

[@SwordOfTheSpiritt]

Thanks for these videos, I take notes along the way and learn a lot from them. One thing I think you should do differently is slow down your speaking and not cut out short pauses while your speaking since I'm sure lots of other people are also taking notes on these videos and it gets hard to keep track and process what you are explaining if you cut out the pauses when your speaking since it sounds like your talking nonstop without taking any breath, without letting the viewers process and take time to write down notes. Other than that, keep making videos on all the different option strategies, I've found them so helpful. I will definitely be sharing your channel with everyone else I know looking to get into trading options. In my opinion you're the best at explaining everything in as simple of terms as possible for people to understand, I walk away with a much better understanding after watching your videos than I do with anyone else on the internet. Also an idea I think would be pretty cool is if you created 3 playlists for your videos both already posted and for future videos as well, where you could put much more complicated options topics into an advanced options playlist, put videos with simpler but still hard topics into an intermediate playlist, then have a beginner playlist which is where you'd put videos explaining basics of options, expecting anyone watching a video in the beginner playlist is brand new to the world of options trading. Thanks again for providing so much, I honestly wouldn't know half of what I know when it comes to trading options if it weren't for your channel. Before I end off this comment, I have a few questions. I am 16 years old with a much smaller amount to trade with ($6000), what are a few of the options strategies you'd suggest I use being at age 16 and willing to take lots of risk since I have a lot to gain, but not much to lose. Also, what are your favorite high risk high reward strategies? And what ticker symbols do you usually trade these strategies with?

[@nabysmommy]

All I gotta say is you’re goin places , young man. 16 years old?!? Holy moly, your parents must be proud.

[@pinkfreud13]

New to options, have been watching all your videos and very, very helpful. Thank you so much! I'm still struggling with covered calls, in this video, you say that "selling shorter-term options allows you to readjust your covered call position more often." Any chance you could elaborate on this? Why would shorter term allow more readjustments? My simple brain is telling me the longer the term, the more time you have to readjust?

[@franciscocuza1535]

Thanks for creating this video. Very well explained. The question I have is the following. If I currently hold 500 shares of XYZ stock, and I wanted to use this strategy would the setup be to sell 5 option contracts at whatever strike price I decide that would be above my spot price for the equity to collect the premium and can I subsequently do it again upon the options expiring. Assuming, they expired OTM. Thanks in advanced!!

[@benji2526]

Basically when you sell a call option covered you want the stock tu stay under the strike price ? So at the expiration date you keep your share and the premium you received right ?

[@arthurthorne3664]

Hey Chris. Great video, but please can you make another video about what you should to manage a covered call for various scenarios. For example if the stock price goes up a lot then should you roll up or leave to expiration. If the price ends up just above your strike at expiration, do you take profit and close the position. If the price ends up just below your strike price should you take the loss or do you roll to try and recover any losses. If the prices falls a lot how would you mange this... add a Put option (convert to a collar) roll down etc etc. In other words a video about what works best for different circumstances and how to best manage these outcomes. Hope that makes sense?

[@rusbarlow715]

Do you recommend roll outs to protect from being called? One strategy I've used is buying a call close to the money in order to max out the premium, putting out a limited order to buy to close at 20% of the premium original value and if that doesn't occur, buy to close the position and sell to open (roll out) a period of time to keep the shares and perhaps move the strike price up as necessary. Thoughts?

[@basantkapoor7046]

I understand that in a covered call strategy if the price goes above the target profit (strike price for call) once should get out of the trade

[@adnanalam1841]

Guy you are an awesome resource, thanks for serving the true purpose for being on the KZbin. Educate people like me and many more like me. Thanks a million stay bless.

[@projectfinance]

Thanks so much for watching! I'm glad you find value in the channel.

[@rolandk8107]

excellent video. will watch again and again. new to the option game

[@SDADanCars]

Great job !

[@chrisadams27]

This is outstanding, thanks for this tutorial.