The Basics of Covered Call Writing

[@tf628]

Thanks, I am new to options ( only done 1 covered call ) . I didn't even think of the buyers strategy of not requesting assignment right away until closer to the expiration. It makes perfect sense. Don't get it assigned just in case it goes down between now ( when it hit strike price ) and the exp date. Once you know you got the shares at a certain price you can take your time and see what it does until the very last moment. THANK YOU for pointing this buyer strategy out !

[@johndoe5816]

the problem with this strategy is that you must be heavily capitalized. The ideal Call Write is where you sell at a couple weeks to expiration and a few strikes OTM. In order for options to be like that, their underlying share price has to be fairly large. Put another way, if you're dealing with a $5-$10 shareprice, don't expect to be able to find anything OTM that's worth selling above commissions.

[@rychendroll]

Thanks! I think this helped me get a better understanding of what to expect as a short covered option writer. I definitely have a better understanding of it than I had from other videos and articles. One question - Lets say I write a 3 month covered option. about 1 month in, short sellers drive the price of the stock above the strike price, but the buyer/holder does not exercise the option. As the short sale push fades, the stock falls back below the strike price for the duration of the option. Since the buyer did not exercise the option when it was above the strike price, they cannot exercise it at the end, as the stock is below the strike price. Is that correct?

[@tyvin8]

All I can say is Fantastic! I am just getting into options and your video was concise, to the point, clear, and I'm sharing your channel with my people. I've done hours and hours of research into the vacab and watched a complete educational series on the subject: I get it. What I needed was you to bring it all together. The thumbs down people weren't meant to be in options in the first place; it's not for everybody. Thanks so much...

[@opufy]

This channel has everything I need to trade options confidently. I thought I needed a degree or something I was search nonstop. I'm canadian, guess I can't use your platform :(

[@Allknowingkeith]

hows your progress? still doing options?

[@opufy]

@@Allknowingkeith yeah iwas up a ton but then hedgefunds crashed the party literally

[@inNYCC]

Great video. Did a great job explaining everything 👍

[@stephenshapiro8404]

Beginner here. So I gather if the stock value reaches or passes the strike price you win 2 ways. Keep all of the premium AND sell the stock at the price you desired. Is this all correct? Thanks.

[@Lestergreen77]

Yes

[@mitchkatz4918]

thanks I have a stock that has moved up and feel that it may decline- should i buy call or put options or should i just sell the stock? I was a long term holder- investor in the stock. not a trader, its in a taxable account - does that matter?

[@pavankumar-hd4jj]

Can we sell the sell call option before expire date????

[@sonarvord]

What to read to understand closing out a covered call option for a gain?

[@cassconner6023]

I have a stock with a very low cost basis and don't want the stock called away and have to pay a large capital gain. It it moves above the strike price can I simply close out the contract before settlement and absorb the loss but keep my stock?

[@reginaldrivers4964]

what happens to the premium if you close the position early?

[@mitchkatz4918]

how high should i write the call for ? is their a limit?

[@victoriaajang5818]

So is better then laterbend of game

[@chimbatete]

What's happens when stock hits the strike price but buyer waited to call and stock crashes and he doesnt buy. Are you stuck with your shares?

[@Lestergreen77]

You should start buy selling puts first. Not by buying shares

[@mistersz]

so if i sell call options and buy stocks, and the stock price is above the strike at the expiration and the call byer choose to exercise the options to buy the stocks. does it means that the 100 stocks i own are removed from my portfolio to my call buyer?

[@Lestergreen77]

Yes

[@akshaytalekar6124]

Very great information 👌👌 But I got one question 🤔 When you say option writer is not stuck in this position until expiration? Is that mean, call writer can close contract anytime he wants? Even if stock goes above the strike price? Or he can only close the contract before stock could go above the strike price?

[@KinGxWolF]

Akshay Talekar the seller can close any time if it is above the strike price before expiration the seller will have to pay to close the contract since that contract is worth more that what he/she received credit for. If the contract is under the strike price before expiration the seller will profit from selling the contract

[@inconginto47]

Video Starts At how much would he have to pay ?and so how do you make profits off of calls ?itm otm long term??how so ??is there multiple ways??im using optionsprofitcalculator.com it says th call I made will make money but idk if I’m ready it right

[@inconginto47]

Green on this website is money for what I’ve been told IV also affects the outcome of profits delta, theta , and Vega

[@finntomkins6825]

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[@alonzocaridad1448]

Who is Edwin Earl? Just curious.

[@alfiesimmons8586]

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[@finntomkins6825]

He is a broker probably the best out there for me. Contact him via email consultedwinearl@gmail com .

[@aaliyahhadid6081]

Does he trade with foreigners? How does he operate?

[@finntomkins6825]

Yeah he does, he trades with everyone. He is also willing to trade and teach new investors who are willing to learn the pattern he uses to make profit for a commission of 25 percent of the profit made.

[@victoriaajang5818]

Why is some time down and some time Up.

[@victoriaajang5818]

And who od any way

[@imlostdreamzinmotion1237]

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[@TheChazzmander]

Give KZbinrs their money back.