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-$70,000 in Unrealized LOSSES - How I'm going to PROFIT!

The Ultimate Writing Covered Call Screener, Spreadsheet, Dashboard is the Upgraded CPT Dashboard. > Join today and receive (with your annual subscription) one FREE month Click this link to join today > www.cptdashboard.com/join/ Core Position Trading, LLC is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, Core Position Trading, LLC relies upon the publishers exclusion from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Core Position Trading, LLC does not offer or provide personalized investment advice. This site and all others owned and operated by Core Position Trading, LLC are bona fide publications of general and regular circulation offering impersonal investment-related advice to member and /or prospective members >USE AT YOU OWN RISK< and >FOR EDUCATIONAL PURPOSES ONLY<. Always do their due diligence (checking your own numbers for integrity) when putting hard earned money at risk and never risk more than you can afford to lose. Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. All rights and trademarks reserved - Core Position Trading, LLC - 20201 http://www.CorePositionTrading.com and http://www.CPTDashboard.com interested in watching more of my video's be sure to visit my Youtube Channel - Core Position Trading http://www.youtube.com/c/CorePositionTrading writing weekly covered calls , writing weekly covered calls, covered call writing example , writing puts to purchase stocks writing puts to purchase stocks covered call strategy example writing put options for income writing put options for income covered call sell to open writing in the money covered calls writing in the money covered calls covered call premium writing covered calls for income writing covered calls for income covered call option strategy example writing covered calls for a living writing covered calls for a living covered call option example writing calls for income writing calls for income covered call option writing calls and puts writing calls and puts covered call ideas writing call 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If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. Topics I discussion range from: Using stocks to Write Covered Calls The Covered Call Investment strategy Using Covered Calls to earn money Explaining the Covered Call strategy Selling Covered Calls tastyworks stock options, trading basics, cost basis, Trading, tastytrade, Covered Call, long stock, profit, Call Option, buying stock, learn to trade, finance trading tutorial, writing calls, bullish trades, beginner trading, tastytrade projectoption strike, options, short options" options trading, The Ultimate Writing Covered Call Screener, Spreadsheet, Dashboard is the Upgraded CPT Dashboard. > Join today and receive (with your annual subscription) one FREE month Click this link to join today > www.cptdashboard.com/join/ Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. All rights and trademarks reserved - Core Position Trading, LLC - 2020 http://www.CorePositionTrading.com and http://www.CPTDashboard.com interested in watching more of my video's be sure to visit my Youtube Channel - Core Position Trading http://www.youtube.com/c/CorePositionTrading CREDIT - How and Why to Use a Covered Call Option Strategy BY ADAM MILTON Updated July 29, 2019 > https://www.thebalance.com/determining-intrinsic-value-1031125 A covered call is an options strategy involves trades in both the underlying stock and an options contract. The trader buys (or already owns) the underlying stock. They will then sell call options for the same number (or less) of share held and then wait for the options contract to be exercised or to expire. Exercising the Options Contract If the options contract is exercised (at any time for US options, and at expiration for European options) the trader will sell the stock at the strike price, and if the options contract is not exercised the trader will keep the stock. For a covered call, the call that is sold is typically out of the money (OTM). This allows for profit to be made on both the options contract sale and the stock if the stock price stays below the strike price of the OTM option. If you believe the stock price is going to drop, but you still want to maintain your stock position, for the time being, you can sell an in the money call option (ITM). For this, you will receive a higher premium from the buyer of your call option, but the stock must fall below the ITM option strike price, otherwise, the buyer of your option will be entitled to receive your shares if the share price is above the option's strike price at expiration (you lose your share position). Covered call writing is typically used by investors and longer-term traders, and is rarely used by day traders. How to Create a Covered Call Trade Purchase a stock, and only buy it in lots of 100 shares. Sell a call contract for every 100 shares of stock you own. One call contract represents 100 shares of stock. If you own 500 shares of stock, you can sell up to 5 call contracts against that position. You can also sell less than 5 contracts, which means if the call options are exercised you won't have to relinquish all of your stock position. In this example, if you sell 3 contracts, and the price is above the strike price at expiration, 300 of your shares will be called away, but you will still have 200 remaining. LEARN MORE Wait for the call to be exercised or to expire. You are making money off the premium the buyer of the call option pays to you. If the premium is $0.10 per share, you make that full premium if the buyer holds the option until expiration and it is not exercised. You can buy back the option before expiry, but there is little reason to do so, and this isn't usually part of the strategy. Risks and Rewards of the Covered Call Options Strategy The risk of a covered call comes from holding the stock position, which could drop in price. Your maximum loss occurs if the stock goes to zero. Therefore, you would calculate your maximum loss per share as: Maximum loss per share = (Stock entry price - $0) + Option premium received For example, if you buy a stock at $9, and receive a $0.10 option premium on your sold call, your maximum loss is $8.90 per share. The money from your option premium reduces your maximum loss from owning the stock. The option premium income comes at a cost though, as it also limits your upside on the stock. You can only profit on the stock up to the strike price of the options contracts you sold. Therefore, calculate your maximum profit as: Maximum profit = (Strike price - stock entry price) + Option premium received For example, if you buy a stock at $9, receive a $0.10 option premium from selling a $9.50 strike price call, then you maintain your stock position as long as the stock price stays below $9.50 at expiration. If the stock price moves to $10, you only profit up to $9.50, so your profit is $9.50 - $9.00 + $0.10 = $0.60. If you sell an ITM call option, the underlying stock's price will need to fall below the call's strike price in order for you to maintain your shares. If this occurs, you will likely be facing a loss on your stock position, but you will still own your shares, and you will have received the premium to help offset the loss. Final Word on the Covered Call Options Strategy The main goal of the covered call is to collect income via option premiums by selling calls against a stock that you already own. Assuming the stock doesn't move above the strike price, you collect the premium and maintain your stock position (which can still profit up to the strike price). Traders need to factor in commission when trading covered calls. If commissions will erase a significant portion of the premium received, then it isn't worthwhile to sell the option(s) and create a covered call. Link can be accessed here > https://www.thebalance.com/determining-intrinsic-value-1031125

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YT VIDEO - $46,446 - April 2024 Cash Flow so far Covered Calls and Dividends I show you

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