How I Get Paid FREE MONEY To Hold Stocks With Covered Call

In this video, I discuss about covered call. Enjoy!
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[@cherylheng4250]

Hi shifu! Could you make a video on doing covered call now that tiger has enabled it??

[@shenguanghui4497]

Hi Kelvin， Thanks for the "steps by steps" explanation on options.

[@poisanmok1987]

You're a great teacher! Thank you!

[@kimsiang]

Thanks for putting out these informative videos. Looking forward to more. Just one thing I noticed, is it possible to enable auto-captions so it’s easier to follow everything you say? Thanks! 🙏🏻

[@silvervoice]

Hi Kelvin, can you make a video to explain C/P Ratio , IV, IV/HisV, IV quantile? Thanks in advanced.

[@mokpx7346]

I havent finish the video but I clicked like edi! Very great video to explain covered call!!

[@Berpoh]

Hi Kelvin, is selling call or put options taxable by Singapore IRAS? Do have to declare as earned income ?

[@dranzerki]

Awesome video! I learnt alot! More of options tutorials please

[@cindywatson5971]

Kevin, Love your video. But I think your term "lot" is incorrect for options. Shouldn't it be called "contract"? Thks

[@strawberrydragon1025]

Hi Kelvin, does IBKR allow selling covered calls on Index Funds like CSPX, VOO, VUAA? If so, do you have a video/link to good instructions on how to navigate the IBKR website interface to do so? I get confused by the web interface sometimes.

[@tankh566]

Hi Kelvin, I would like to check for LEAP option. If I sell put at $2.5 collecting a $1.3 premium, plus i do a Buy call option at $5, paying a 0.85 premium with same expiration. What is the disadvantage of this ? Because it seem like I'm will lost only when share price drop below $5.

[@gyutaro88]

thanks for explaining so clearly Kelvin ! 🙏

[@gyutaro88]

Just realized have to be a Margin Account to do this ?

[@normanchai2802]

Hi Kelvin Do u know if I sell call without the particular stock and is exercised by the buyer, will I be alerted by the trading platform? How many days am I given to buy the stock to cover back

[@marcng2448]

Hey kelvin, good video explaining covered call and options. Would you be able to do one video on selling out options? I was told selling put option is a safer way to invest in option. Thank you

[@KelvinLearnsInvesting]

Yea im planning to talk about it soon

[@ericwongcy]

Hi Kelvin, how do i do this covered call using tiger broker?

[@izzyherman]

love the explanations, thank you!

[@derekbystander]

Awesome kelvin! Understood liao

[@TiOnGY]

Hi kelvin are you able to make a video on how to do covered call on tiger cos the cso told me is available for us stocks

[@henrylim9196]

May I know what is the method whereby I want to earn the premium and do not want to buy the stock? How I going to do so? I see the platform but dont know how to click.

[@retrovox]

Hi Kelvin, what's your opinion on covered call ETF? E.g QYLD ETF

[@kelvinlim9694]

Hi Kelvin, can do video on put credit spread and call credit spread?

[@64ytb]

hI Kelvin, when are you opening your option classes, I like to join.

[@purify2269]

Hi kelvin can you do a video about which brokers in Singapore support CCs and CSPs? For example does tiger support

[@KelvinLearnsInvesting]

Interactive brokers and TD support CC and CSP. Tiger and Moomoo only support CSP. I have done tutorial for IBKR, will do for Tiger and moomoo soon: kzbin.info/www/bejne/bomakp98hK-Yi68

[@TK-hw6jk]

In IBKR do u need to choose covered call or naked call b4 selling? If not what if u have the 100 stocks but IBKR still buy another 100 back from market to fulfil the call?

[@KelvinLearnsInvesting]

No need to choose, IBKR is smart enough to know whether its a covered call or not

[@viknesh6569]

Good job kelvin

[@a.mustafa9698]

You explain it really well

[@KT71357]

Thank you, Kelvin

[@musicalbirds2928]

Great video. Thanks for sharing.

[@chilledgamezone4950]

Hi Kelvin - The SP500 example its been a steady growth from 2019 to 2020. If I did the call options it would mean i would have to keep selling my 100 stocks because if the share price keeps going up above strike price your forced to sell? So is this why you choose a strike price which the share price would find hard to achieve. Thanks bro Im nearly at all the information i need to start my options wheels but i dont want to rush it and just need a few gaps of knowledge to be covered. thanks

[@KelvinLearnsInvesting]

Yea, the original method sells options around 0.3 delta. If want to lower chances of getting called away, can sell at 0.1 delta or even lower

[@chilledgamezone4950]

@@KelvinLearnsInvesting thanks for your help mate. Im just trying to learn who or why it can get called away before diving in. Your videos are great. Probably best i have come across on the internet including CGS

[@shulingchen2285]

If the sell call option is in the money on expiration date, if u don’t close the position, it will not expire worthless though the other party did not exercise yeah?

[@KelvinLearnsInvesting]

If the other party did not exercise, it will expire

[@andyneo424]

Loving the explanations. Can you cover selling puts soon?

[@KelvinLearnsInvesting]

Next week :)

[@andyneo424]

@@KelvinLearnsInvesting steady bro.

[@jeffer8762]

3:04 if I understand correctly you are selling option to sell stock? example stock strike price is 376x100 = 37600, so in total, you get $2737+$37600 the option you sell is the free money?

[@KelvinLearnsInvesting]

Eh no no. Option and stock 2 different thing. Let's say i sell at $376 strike: - i receive $2737 premium by selling the option - i have obligation to sell my stock at $376. If i bought this stock at $400, then i sell at $376, i'll lose money right

[@August-sk7oq]

Can make a video on how to buy options on Tiger?

[@naramukuriht]

Hi Kelvin, not sure if you like answering questions in comments section. Anyway i am still going to ask you a doubt. I ve been into options trading (bullish and bearish) keeping my risk just to the options premium. I usually close the position; never have I ever exercised an option to buy a stock and wait for the underlying to appreciate so that i can sell it. I am planning for a covered call options trading. My question is what kind of stocks do you think is worth owning to see a continuous stream of income through covered call strategy? I dont need the specifics, but a general outline would suffice. P. S. i usually trade on stocks that are productive assets. Thanks.

[@KelvinLearnsInvesting]

Ah i usually try to answer when i have time haha. For yr question, do it on stocks which like, for example i like tesla, square, so i do cc on those stocks. But take note this will limit your upside if stock shoots up

[@naramukuriht]

@@KelvinLearnsInvesting Thanks mate! I understand the limiting upside when the stock shoots over the call price. So the idea is to predict if the stocks are not too volatile so that the share price doesn't overshoot the call price, in which case you get to retain the stock, and further sell call options against the stock in the subsequent months thereby getting a continuous income every month. Am I right?

[@KelvinLearnsInvesting]

Yea. That's my strategy also

[@DerLostPotato]

Hi kelvin, can you recommend which platform has covered call? I'm using moomoo but I don't see covered thingy

[@Iac12m]

Wow cool learn something new. Can do a part 2 to show step by step guide?

[@KelvinLearnsInvesting]

Made a tutorial for IBKR: kzbin.info/www/bejne/bomakp98hK-Yi68 Will be making for tiger and moomoo soon

[@abahden]

Is covered calls on IBKR auto? Meaning if you have 100 shares of the stocks and the option gets exercised, would the stocks get called automatically?

[@KelvinLearnsInvesting]

Yup it's auto :)

[@Misterr_M123]

Hi I’m using tiger. Owned 100 shares of a company but when tried to sell covered call option on tiger brokers it states “Your buying power is insufficient”. Does tiger don’t support covered calls? It seems like it’s not recognizing my current 100 shares as collateral

[@KelvinLearnsInvesting]

Ya, tiger brokers currently doesn't support covered call, so need to be careful

[@JohnSmith-nm2gs]

Hi, if I sold a put, when the price drop below the strike price before expiration date, can the buyer exercise the option or he must wait till after the expired date ? Thanks

[@KelvinLearnsInvesting]

He can exercise anytime. But from my experience its usually on last day after market close

[@bakagiraffe]

@@KelvinLearnsInvesting Generally it is so. But some of the options are european options (mainly are the indexes options such as NDX and SPX). www.cnbc.com/advertorial/2020/09/04/an-introduction-to-ndx-options.html These options can only be exercised @ end of the contract.

[@JohnSmith-nm2gs]

Thanks guys 🙏

[@JohnSmith-nm2gs]

So if I do not intend to own the stocks, I should buy back to close it at a loss ?

[@KelvinLearnsInvesting]

​@@JohnSmith-nm2gs If the option goes in the money, you will have to buy back at a loss. Or you can buy back, then resell another option to cover the loss. The term for this is rolling

[@husnyjeffrey]

Quick question. Can we sell a call option without owning the stock? Example. Selling a call with the strike price of 200. Current price is 180. In order to avoid the risk, can we place a stop limit order with stop price 199.50 and limit price 199.95 ? Is this possible?

[@KelvinLearnsInvesting]

Yes its possible, but not recommended. Because if u lose money, its easy 1-2k losses or even more. A better is to use something call "bear call spread", its similar to stop loss but much safer

[@juanfelipenavarrosalas5713]

How can i do rollover in moomoo?

[@MingQing]

Good Kelvin, thanks for awesome video :)

[@KelvinLearnsInvesting]

First!

[@MingQing]

@@KelvinLearnsInvesting hehe finally 🤣

[@ron2040]

2nd😁

[@ron2040]

How bout nature call? Can make video on it. 😂

[@KelvinLearnsInvesting]

@@ron2040 Cannot cannot, that one haram

[@AldwynVillasenor]

Thanks Kelvin, I have 2 questions. 1) If the strike price is lower than the underlying price after expiration date, will I get that extra? Or just the premium pay regardless how high is the current price? 2) Also if the underlying price is already more than strike price before expiration date, can i do a SELL CALL before the expiration? What will be the pros and cons if I do that? Thanks.

[@KelvinLearnsInvesting]

1. No, because you only receive money the moment you sell option 2. Don't sell call before expiration, because you don't have the shares yet. You can only do covered call when you have 100 stocks. There's only cons when doing naked call, unlimited loss if the stock goes up

[@AldwynVillasenor]

@@KelvinLearnsInvesting Thanks Kelvin. So, there will be no advantage to me even the stock becane double after expiration, as long as it is above strike price? What will be the good move if let say i got the PLTR at 10usd strike price and now that it is already in 12+ usd and expiring on April 1. Tha ks again.

[@KelvinLearnsInvesting]

@@AldwynVillasenor Hmm.. don't understand, which is the put?

[@AldwynVillasenor]

@@KelvinLearnsInvesting Example, Sell Put PLTR at Strike Price of 10USD, expiration will be on April 1, 2021. Now the PLTR is already at 13.39, what will be the best move for me?

[@ivanyewlieping4941]

can you show us how to trade stock (NASDAQ 100 (NDX)) using tiger broker?

[@KelvinLearnsInvesting]

Check this out: kzbin.info/www/bejne/qonTe62XesahjqM

[@giselleng5664]

Is there a way to not sell ur shares if the options expires not in ur favour? The shares will be automatically deducted from ur broker account?

[@KelvinLearnsInvesting]

U can roll the options. Which is to buy back the current option, then resell at a further date. It delays the stock being called away, n give the stock price to be in your favor

[@giselleng5664]

@@KelvinLearnsInvesting thanks. will look into it!

[@blalala6181]

Does this mean there's no way you can lose money with covered call

[@NotIssabelleYoutube]

Tiger broker don't support covered call or any strategist spread. In case anyone is using. Nice Video Kelvin. :)

[@teejiawei6943]

Really? i have 100 MARA share and sold a call option at 45 on next friday. what would happend if the share price goes up to 50? Mean the system will deduct 5000 in my account and sell at 45?

[@henrylim9196]

@@teejiawei6943 if u not sure about option, find out more before commiting will be safer

[@johnsontan4730]

@@teejiawei6943 If the system does that. Can't you just manually sell away your 100 MARA shares at 50$ too? Isnt this way covered call too? But you have to manually do it instead of the system doing it for you.

[@fishphage2762]

Hi Kelvin, I use tiger broker for my stocks. I am thinking of doing covered calls on my portfolio. In the event, I need to sell my existing stocks to the buyer of my covered calls, how seamlessly or tedious is the process on the Tiger Broker platform? Thanks

[@happyfamily339]

Can you elaborate how the process of covered call using Tiger Broker?…. How to sell the existing stock to the buyer if the strike price is hit?

[@Csybbq]

I buy 100 share stock in tiger broker,just figure out tiger broker does'nt support covered call ,what the～

[@KelvinLearnsInvesting]

I just got news that they support. But you need to contact customer support to enable it

[@olarius650]

1:25 shouldn't it be 1 option contract consisting of 100 shares instead of 100 options?

[@douglaslee3646]

Is it true Tiger brokers dun support covered calls?

[@KelvinLearnsInvesting]

Yea, i heard that it doesn't recognize covered calls and treat it as naked call

[@melvinleong9836]

If I sell cover call, strike $60. And the price stays at $50. How do I close off my option at expiry?

[@KelvinLearnsInvesting]

You can click back the same call, then click buy

[@melvinleong9836]

Can I just do nothing? Seem like buying back the same call will have a cost

[@KelvinLearnsInvesting]

@@melvinleong9836 Yea you can do nothing, and wait for the options to expire. Normally I'll buy back for 2 reasons: - i don't want to wake up and see that it's in the money, weird stuff may happen after trading hours - i want to close this call, and start selling next week call

[@melvinleong9836]

I see, thank you!

[@kenjik7472]

@@KelvinLearnsInvesting Hi Kelvin, great stuff you are doing, Like your simple explanation. How much the cost that we are paying for closing the option on the expiry date? e.g covered call at strike price $16.5 with premium of $8, on the day of the expiry when the stock price is $16 and I plan to close it, the premium could be $6 to buy the call? in this case I only earn $2 but if I let it expire I will earn $8. is this correct? maybe create a video to teach us about this closing part :)

[@sureshrau8723]

Thank you cikgu Kelvin, for clear explanation. Owning 100 stocks need deeper pocket.Got any other lubang to earn passive income from stocks

[@KelvinLearnsInvesting]

Find cheaper stocks to sell covered call haha

[@benleong2008]

Does Tiger Brokers support covered call?

[@KelvinLearnsInvesting]

Yes. But you need to contact customer support to enable it

[@freddyong504]

is it good to sell a covered call on arkk?

[@KelvinLearnsInvesting]

I'm doing that on my arkk, but its a slightly modified version. Instead of selling at 0.3 delta, i sell about 10-15% price distance. Sure the premium is low, but i get to collect extra $0.1-0.2 x 100 every week. The risk is that it will get called away, but so far... it hasn't :D

[@freddyong504]

@@KelvinLearnsInvesting okay i will do the same. next week i will try mayb 137 to 140 covered calls

[@freddyong504]

@@KelvinLearnsInvesting recently arkk is flying so much hahaha scary

[@KelvinLearnsInvesting]

I do weekly, so it's easier to adjust the price upwards every week

[@freddyong504]

@@KelvinLearnsInvesting is it if we are selling we look at ask price and the number buyers are indicated under the bid price?

[@superconnie5003]

Local broker no options trading

[@benjaminfeather9965]

Bro this dude is hilarious I love it

[@HypertronicTeddy]

cant wait to do covered call when tesla stock splits!!! i will finally have 3 digit worth of tesla

[@KelvinLearnsInvesting]

Yeaaa

[@terenceng159]

Can moomoo do covered calls

[@KelvinLearnsInvesting]

Its not enabled. U have to contact customer support to enable

[@bondbabe]

It's a good video...but i watch liao still blur blur...i think i stupiak

[@jeffer8762]

u r nt alone bro, i also don understand , only cover here n there

[@DaveD0121]

Am I the only one who hear it as coward call hahaha 🤣

[@KelvinLearnsInvesting]

Hahaha

[@livinglifeinsingapore5746]

Friday Liao..Where is your new video?😒

[@KelvinLearnsInvesting]

Here you go kzbin.info/www/bejne/q5XTpIOnrLJ4g7c

[@livinglifeinsingapore5746]

@@KelvinLearnsInvesting 😂😂😂