Generate Monthly Income with Covered Call Options Part 1

[@oorishawo]

I started the journey with your tutorial, went about other tutorials, then came back to realize you are still the best in this game. Thanks for this explanation

[@EngLee95]

Free stuff do exist in the internet TQ Adam best mentor ever

[@MoneyandLifeTV]

This the best explanation of any of this stuff I've ever heard. A++ job.

[@degendimes8672]

I was thinking the exact same thing.

[@stimeon]

💯 %

[@Jamerican284]

Adam, do you have a course on this? I have always been curious about how to make money with options trading but never quite understood the terminology and process etc. What are "Calls", "Puts", "Strike Price" etc. Thanks

[@lg24det]

You couldn’t explain it any better! Loved the tutorial! Thank you my friend!

[@zadokmotorfreight2423]

What a great job! I've been studying options for awhile now, and I have to say that Adam did an incredible job explaining much about covered calls in a very short amount of time! Very impressive!

[@yonasg9681]

You are the best Adam!

[@bennyap3002]

Very well explained. thank you.

[@ClipperNationTV]

is weekly covered calls better than monthly covered calls? how far OTM would you go?

[@H0RnSeY]

Thank you!

[@Mangeurdemouton]

I wish I could sell options, my bank required 50k of money before doing that. it's soo easy because the theta is helping you

[@ron3977]

Adam your all videos are fabulous with great information and explanations to share !

[@biggerstocks]

What do you think about weekly options? They seem to have a higher premium versus a monthly option? Not always but most of the time.

[@marcobormann67]

I am getting really bad prices for these Calls. I think there is a fair chance for Amazon to jump to 110. And selling covered calls would give me 15$. That is not worth it at all given the size of the underlying investment. Where do you get such good prices?

[@jjd903]

Selling calls on stocks you want to sell anyway. If the stock starts to drop too much or rises to the upside you can buy the option back and sell the stock or participate in gains. The 1099 tax form doesn't reflect this accurately though. You'd need to keep track of these specific trades throughout the year and inform your accountant about.

[@howardalien2720]

If you want to get 39.9% annually selling calls then you have to sell naked, otherwise you have to also have 9x more in shares and that still would result in 3.9% in premiums.

[@rafaelmariscal9170]

A potential high risk of selling call options for some premium out of the money, is that, for example, you may be collecting a couple hundred dollars in premium while the value of your stock drops by thousands of dollars. Sometimes, if you think the stock price has had a good run higher, has topped out and may fall back some 10 to 20%, the call option premium will be of very little consolation.

[@tammy3458]

Awesome video! Thank u so much for explaining every step so clearly! So many people make this stuff so confusing! Love ur accent too:)

[@AdamKhoo]

Glad it was helpful!

[@TechnoRiff]

Hello Adam - at 10:05, from a starting breakeven at 50, and having sold a call for 1.50, isn't the new breakeven now 48.50?

[@huyduong5716]

It’s seem to me that I can grasp the concept of selling puts and selling call easier than buying puts and buying calls, don’t know why that is. Lol.

[@Caspertraderofficial]

Is it just me or are options just complex?

[@michelakras8023]

Don't worry, it takes time to fully understand and get going, but they are a good way to earn money.

[@somshrm45]

Superb explanation.

[@hightablehierarchy9427]

High risk strategy which requires lot of margin. But the best way to sell are far otm calls and puts. If the stock opens huge up or gap down the next day(which is very rare), then that's it. Kaboom!! Warren buffet made millions just only by selling otm options.

[@MrSackinator]

Lmfao… Oh yeah bro... Warren buffet sells long term (5-10 year) out of the money puts on indicies… And that is not how he made his fortune. You are an idiot.

[@WorldReserveCurrency]

Adam thank you for this!! Man you just have a way of simplifying it. I’ll be looking st trying some of these strategies out.

[@MasterEggroll]

Great video! Two questions. The reason you want the contract to expire worthless is so you keep the premium and your shares? What happens if the stock drops 5 bucks? You still keep the premium but just lose on the stock value? Anything else?

[@kamal012345678910]

nothing. you keep the premium and your shares, this is why you should sell calls on stocks you dont mind owning long term

[@Brehon_TalkingFinance]

My coworker has Fidelity doing this for him.. They actually contacted him about this.. Fidelity gives him anywhere from 7-10 monthly..

[@TheBalls55]

Are you paying short-term capital gains tax each time you collect the premiums

[@jjd903]

Yes

[@ebojfmdboojoh4023]

This may sound a stupid question but couldnt you be assigned if the option also expires in the money. For instance in your example if the price expired at $49 the buyer could still technically assign you and force you to sell at the lower price.

[@jezzermeii]

Binary options have been, or will soon be, banned in Europe. Too many people losing too much money, I think.

[@anubhavbarman429]

Hi Adam How to decide the strike ??? Also if I make a Loss on call and give delivery and the initial price never comes back.... What to do in that case?

[@huyduong5716]

Hi. Just wondering if you can sell puts and sell calls for the same stock simultaneously? Thanks.

[@stellasu]

Thanks Adam! The 34% return will work if it never goes above the strike price though. What's the strategy after you are forced to sell your shares?

[@coolestBlue]

That is the biggest disadvantage of covered call:it gives you short term income but will deprive you long term gain unless you have the courage to go back and buy the same stock at higher price. Therefore many market pundits don't recommend this strategy if you are investor. But if you are trader then you don't care if you are forced to sell. In that case, you will move on to other opportunity.

[@kevinthomas1317]

Thank you so much Adam. I truly enjoy your analysis and the pace of it. Helpful quality content. I will now take a closer look at selling one strike out of the money.

[@whykoks]

First it's important to build the skills to make a view of the market, same view is applicable to most of the instruments.

[@robertklose2140]

This is a superb tutorial.Thank you.

[@gmoneyslowdance5510]

Great educator. Thank you

[@miniemoe1]

Excellent explanation and I have a question. Can I sell(write) more than one contract? For example 5 contract options?

[@LeoandMerly]

You can, but you must own the underlying stocks first. Otherwise, it would be a naked call.

[@50tigres79]

worse way to make money. 1. u need a big margin. i rather use the money in something else. 2. very small pay.

[@Coffewithsteve]

Enjoy your videos

[@buenbarro]

best cover calls video of all tube

[@francislambert5189]

3.9% x 9 = 35.1% per year..No?

[@lehlogonolomaila7587]

Adam you are the best !!!!

[@fitforlife5142]

I really like all courses you provided. Of courses, your KZbin videos.

[@dabumh]

is there a course where i can learn everything about Covered Call options??

[@abutaher9392]

excellent explanation, thanks.

[@StudioSevenG]

Nice explanation, thank you!

[@ellycho1]

Adam, your explanation is clear, thanks

[@takedatgurl1]

Can you make a video on call debit spread

[@jamesfreud1]

ugh.. Adam will you just tell me what shares to buy everyday lol? The stock market is eating me up right now man. I wish i would've saw this video a while back. I'm still learning and apparently I'm learning the hard way. I'm not giving up, i just need to come up with a different game plan, cause obviously what i'm doing is NOT working. I bought a few calls on apple and amazon and made a little money, then i got cocky and bought a bunch of other options that don't have a ton of volume and now they are expiring worthless tomorrow. There's alot more learning i need to do. Thanks for the video! I love your channel and the way you explain things. You are very knowledgeable and me personally i'm grateful that you are teaching us! You're the best!

[@ronsexton3685]

Good explanation.

[@kbonsu7590]

greaters of all time @adamkhoo

[@maxamedxasan929]

Forex halal or haram

[@akhmadrofiq3547]

Thanx you Mr. Adam

[@jozefmatyasek]

You are genius !

[@Krunalpatel-ks7tj]

Best tutor on you tube. Awesome.

[@tofayelahmed2540]

this is huge! thanks for the video

[@DopeWithoutDope]

Thanks

[@jacksonbrown2827]

Where you find 1.5 on KO!? Lol

[@HKFIJIHK]

its used as an example.......

[@DrMarlowski]

Not first!

[@masensen858]

if the stock price goes against you, then your losses are unlimited lol. good luck with the strategy .

[@Adam-uz3hj]

Incorrect, watch the video.

[@brahsup5980]

awesome vid! Could you possibly do a market update and outlook on the hangseng index? THANKS!