Covered Calls (Week 4 of 12) | Getting Started with Options | 3-5-24

[@markmatanes819]

Exactly what I need, thank you.

[@tradertalkswebcasts]

Glad to hear it! Here's the link to the entire Getting Started with Options series: kzbin.info/aero/PL8a6s5nq1lPRcGlhhMLSqx1BK1rttI00R&si=sJJa1I_FIGzmmnnh Enjoy! ^Barb

[@alan-jf2mz]

firstly, thank you barbara. i've learned much from your videos these last couple of years on my journey to learn trading. you have been my favorite mentor. base hits! after absorbing tons of info, and wasting money on long calls and credit spreads, i currently only trade using the buy-write strategy using stocks with prices between $3 and $30. i have over 4000 shares split between roughly 20 companies and i'm getting nice returns with an average of 7 week trades. my account is still under $20,000, but growing nicely. i started with $5000 last fall and added $10k more this spring. total returns are appx $3000 so far. scan, research, study, repeat! always add new companies to the mix when any current ones stop moving up. i encourage eveyrone here to pay attention to what barbara has to say.

[@tradertalkswebcasts]

Thank you so much for taking the time to provide this welcome feedback. I appreciate it. ^Barb

[@AJ-cg7zc]

Staying on the topic today . That will be first time :)

[@tradertalkswebcasts]

We aim to please. ^Barb

[@JW-tk2ln]

I may be missing something, and hoping you can illuminate it for me. On the AMZN example, why not sell the $185 on 100 shrs to potentially gain an extra $500 if/when called out (over the $180 strike), giving up only $120 in credit ($2.46 - $1.26 BID prices), and at the same time potentially having a covered call that does NOT get called out, allowing you to 'rinse and repeat' after the initial expiration date? Just curious...........am still trying to learn options trading......

[@tradertalkswebcasts]

Hmmm. I don't think you are missing anything. We did sell the $185 call in the example on AMZN for exactly the reasons you outlined. Well done! ^Barb

[@JW-tk2ln]

Oh, sorry.......must have missed that. Gotta admit I was binging trader talks vids all day, and must have missed that change. Thanks for your reply though, appreciate it very much.

[@chrisanstis]

What do you do when the shares keep dropping, then you can not sell calls

[@tradertalkswebcasts]

Good question. if the price of the stock 'keeps dropping' an investor might choose to exit the position rather selling a covered call on the position. ^Barb